The Coase Theorem Says That Which of the Following Is

question 24

Multiple Choice

The Coase Theorem says that which of the following is necessary to lead to an efficient use of resources?

• A) Government intervention
• B) Presence of transaction costs
• C) Existence of property rights
• D) All of the above answers are correct.

---

Definitions:

Adjustment

An entry made in the accounts to correct an error or account for a transaction not recorded in the regular accounting period.

Available-for-sale Securities

Financial assets that are bought with the intention of selling before their maturity date, but not classified as held-for-trading or held-to-maturity investments.

Stockholders' Equity

It represents the ownership interest of shareholders in the assets of a company, after deducting liabilities.

Income Statement

A financial statement that shows a company's revenue, expenses, and profits over a specific period of time.