According to the Coase Theorem, an Externality Always Requires Government

question 45

True/False

According to the Coase theorem, an externality always requires government intervention in order to internalise the externality.

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Definitions:

Ought-Actual Discrepancy

The gap between how individuals believe they should be (ought self) and how they actually perceive themselves (actual self), potentially leading to stress or discomfort.

Self-Awareness

The conscious knowledge and recognition of one's own character, feelings, motives, and desires.

Emotional Reactions

Human responses to internal or external events characterized by intense feelings, which can influence thoughts and behavior.

Ought-Actual Discrepancy

The gap between an individual's perception of their current state (actual) and how they think they should be (ought), which can lead to emotional distress.