There Are Two Divorce Laws, a and B

question 149

Multiple Choice

There are two divorce laws, A and B. Under A, it takes only one person to agree to a divorce and the divorce is granted. Under B, it takes two persons to agree to a divorce before it is granted. According to Coase,

• A)there will be the same number of divorces under both laws if transaction costs are zero.
• B)there will be more divorces under law A.
• C)there will be more divorces under law B.
• D)taxes should be imposed on those parties who seek divorces.
• E)subsidies should be granted to those persons who unwillingly get divorces.

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