The Coase Theorem States That

question 270

Multiple Choice

The Coase theorem states that

• A)taxes are an efficient way for governments to remedy negative externalities.
• B)subsidies are an efficient way for governments to remedy positive externalities.
• C)industrial policies encourage technology spillovers.
• D)in the absence of transaction costs, private parties can solve the problem of externalities on their own.

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Definitions:

Cohort

A group of individuals sharing a common factor (e.g., age, experience) within a specified period, often studied to identify patterns over time.

Longitudinal

A research design that involves repeated observations of the same variables over short or long periods of time.

Cross-sectional

An observational study type that examines data collected from a population or a representative sample at one particular point in time.

Cross-sectional

A research design that analyzes data from a population, or a representative subset, at one specific point in time.