The Coase Theorem States That

question 17

Multiple Choice

The Coase theorem states that

• A)transaction costs consist of marginal private costs and marginal social costs and are higher when exchange is subject to increasing marginal costs.
• B)transaction costs are the difference between marginal social costs and marginal private costs and are higher when exchange is subject to decreasing marginal costs.
• C)when transaction costs are significant, the resource-allocative outcome will be the same regardless of who is assigned the property rights.
• D)when transaction costs are insignificant, the resource-allocative outcome will be the same regardless of who is assigned the property rights.
• E)b and c

---

Definitions:

Shame and Doubt

Shame and Doubt describe a developmental stage in Erik Erikson's theory, typically around early childhood, where children learn to assert their independence; if not handled well, they may feel inadequate.

Generativity

A concept in Erikson's theory of psychosocial development focusing on the desire to produce or generate something that contributes to society and the next generation.

Stagnation

A period or state of inactivity or lack of growth, often used to describe periods of limited personal or professional development.

Integrity

The quality of being honest and having strong moral principles, or the state of being whole and undivided.