The Coase Theorem States That If Transaction Costs Are Low

question 81

Multiple Choice

The Coase theorem states that if transaction costs are low, the number of parties is small, and property rights are well established

• A) the government must intervene to eliminate any externalities in the market.
• B) private transactions are efficient.
• C) there will be no pollution.
• D) Both answers B and C are correct.

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Definitions:

Foreign Country

A nation that is located outside of one's own country's boundaries.

Representation

The action of speaking or acting on behalf of someone or the state of being so represented, particularly in a legislative or political context.

Minorities

Groups in a population that are smaller in number and often have different ethnic, racial, religious, or cultural characteristics from the majority of the population.

Women

Adult human females.