The Coase Theorem States That

question 486

Multiple Choice

The Coase theorem states that

• A)under certain circumstances government intervention is not needed to reach efficient outcomes when an externality is present.
• B)government intervention is always required to reach an efficient outcome when an externality is present.
• C)government intervention cannot lead to an efficient outcome when an externality is present.
• D)only negative externalities can be resolved using government intervention.

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Definitions:

Ground Level

The specific area or surface upon which activities, operations, or structures are situated and take place.

Tropical Rain Forests

Dense, wet forests found near the Equator, rich in biodiversity and playing a critical role in the Earth's climate.

Nutrients

Essential compounds or elements required for growth, reproduction, and repair of organisms, playing a crucial role in ecosystems.

Thick Atmosphere

An atmospheric condition where the gaseous envelope surrounding a celestial body is denser or more compressed.