In Markets with Externalities, If Property Rights Are Assigned Unambiguously

question 16

Multiple Choice

In markets with externalities, if property rights are assigned unambiguously and if the parties involved can negotiate costlessly, then the ________ theorem suggests that the parties will arrive at a Pareto-optimal outcome regardless of which one owns the property rights.

• A) Coase
• B) Dolan
• C) Pigou

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Definitions:

Railroads

Rail transport systems consisting of tracks, trains, and facilities for the movement of passengers and goods. They were crucial in the industrialization and economic development of many countries.

European Banking

European Banking refers to the banking system and practices within Europe, characterized by diverse regulations and markets across different European countries.

Newlands Reclamation Act

A 1902 U.S. law that funded irrigation projects for the arid lands of 20 states in the American West, aiming to encourage agriculture through water management.

Riparian Rights

Legal entitlements of landowners to access and use water from a river, stream, or other watercourse flowing adjacent to their land.