Which of the Following Suggests That the Private Market Can

question 62

Multiple Choice

Which of the following suggests that the private market can be effective in dealing with externalities?

• A) the 'invisible hand'
• B) the law of diminishing social returns
• C) the Coase theorem
• D) the law of increasing social returns

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Definitions:

New Money

Refers to wealth that has been acquired recently, as opposed to wealth that has been inherited over generations.

Decades

Periods of ten years, used as a means of referencing and organizing time in historical and sociocultural analysis.

American Stratification System

The hierarchical organization of social classes in the United States, characterized by unequal distribution of wealth, income, and societal influence.

Larry Ellison

Co-founder of Oracle Corporation, a major software and technology company, known for his contributions to the development of database management systems.