According to the Coase Theorem, in the Presence of Externalities

question 354

Multiple Choice

According to the Coase theorem, in the presence of externalities

• A)private parties can bargain to reach an efficient outcome.
• B)government assistance is necessary to reach an efficient outcome.
• C)the assignment of legal rights can prevent externalities.
• D)the initial distribution of property rights will determine the efficient outcome.

---

Definitions:

Adult Daycare

A service providing supervised care and social opportunities for elderly or disabled adults during the day.

Mental Changes

Alterations in cognitive function, mood, or behavior, which can be due to a variety of factors including illness, injury, or psychological conditions.

Confused

A state of being bewildered or unclear in one’s mind about something; often a symptom of various medical or mental conditions.

Caregivers

Individuals who provide care to people needing assistance due to illnesses, disabilities, or aging, often family members or professional healthcare workers.