The Result That, Under Certain Circumstances, No Government Action Is

question 36

Multiple Choice

The result that, under certain circumstances, no government action is needed to control an externality because it can be eliminated by bargaining between the affected parties is called

• A)a Nash Equilibrium.
• B)the Coase Theorem.
• C)the Bargaining Theorem.
• D)English Bargaining.

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Definitions:

Custom-Made

Specifically designed and made to an individual's specifications or requirements; tailor-made.

Enforceable Agreement

A legally binding contract that can be upheld and compelled by law in a court of justice.

Earnest

Serious in intention, purpose, or effort; sincerely zealous.