The Coase Theorem Posits That Externality Problems Can Be Solved

question 75

Multiple Choice

The Coase theorem posits that externality problems can be solved without government intervention

• A) when transaction costs are low and property rights are clearly defined.
• B) when trading in tradeable allowances occurs.
• C) if markets can reach the efficient quantity and if transaction costs exceed the deadweight loss caused in the market.
• D) only rarely, that in general markets cannot maximize social surplus.

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Definitions:

Humanistic Psychology

A psychological perspective emphasizing individual potential, self-actualization, and the importance of free will and personal growth.

Birth of Psychology

The historical commencement of psychology as a distinct scientific discipline, marked by Wilhelm Wundt establishing the first experimental psychology lab in 1879.

1879 in Germany

Marks the year when Wilhelm Wundt founded the first laboratory dedicated to experimental psychology, marking the birth of psychology as a distinct scientific discipline.

Wilhelm Wundt

Often referred to as the father of modern psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879.