The Result That,under Certain Circumstances,no Government Action Is Needed to Control

question 72

Multiple Choice

The result that,under certain circumstances,no government action is needed to control an externality because it can be eliminated by bargaining between the affected parties is called

• A)a Nash equilibrium.
• B)Coase Theorem.
• C)Bargaining Theorem.
• D)English Bargaining.

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Definitions:

Indirect Transfer

The movement of goods or services through an intermediary before reaching the final consumer, rather than a direct transaction from producer to consumer.

Treasury Bills

Short-term government securities issued at a discount from the face value, maturing in one year or less, used as a tool for managing national finance.

U.S. Treasury

The federal department responsible for managing government revenue, issuing currency, and executing fiscal policy in the United States.

Money Market Instrument

Short-term financial instruments that include treasury bills, commercial paper, and certificates of deposit, typically with high liquidity and low risk.