The Coase Theorem Is the Proposition That If Property Rights

question 36

Multiple Choice

The Coase theorem is the proposition that if property rights exist, the number of parties is small, and transactions costs are low,

• A) public transactions are efficient.
• B) private transactions are efficient.
• C) external benefits result in deadweight losses.
• D) external costs result in deadweight losses.

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Definitions:

Fluctuate Wildly

To vary or change rapidly and unpredictably, often used in financial contexts to describe asset prices or market movements.

Inefficient

Describing a process or system that wastes resources or does not achieve its goals effectively.

Spring Brake Chambers

Components in a vehicle's braking system that use spring power for parking brakes and air pressure for service brakes, providing safety and redundancy.

Cage the Mainspring

A process in mechanical watchmaking that involves restraining the mainspring to prevent it from releasing its energy too quickly.