Which of the Following Statements Is True

question 43

Multiple Choice

Which of the following statements is true ?

• A) Emissions-trading is trading that allows firms to buy and sell the right to pollute.
• B) The Coase Theorem is the proposition that private markets can rarely ever achieve social efficiency.
• C) The free-rider problem refers to those who ride on public transit systems without paying.
• D) Government failure has never occurred in the United States.

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Definitions:

Authority To Make Contracts

The legal capability or power granted to a person or entity to enter into binding agreements or contracts.

Audit

An official inspection of an individual's or organization's accounts, typically by an independent body, to verify their accuracy.

Trading Partnership

A Trading Partnership is a legal arrangement where two or more parties agree to conduct business activities together for profit, typically involving the buying and selling of goods or services.

Cash Flow Problems

Financial challenges faced by a business when it does not have enough cash on hand to cover its obligations.