The Coase Theorem Is the Proposition That If Property Rights

question 242

Multiple Choice

The Coase theorem is the proposition that if property rights exist, the number of parties is small, and transactions costs are low

• A) external costs result in deadweight losses.
• B) external benefits result in deadweight losses.
• C) private transactions are efficient.
• D) public transactions are efficient.

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Definitions:

Intrinsic Motivation

The drive to perform activities for the inherent satisfaction or pleasure derived from doing the activity itself, rather than for an external reward.

External Reward

Any benefit or reinforcement received from the environment in response to an action, often motivating behavior.

Primary Motivation

The fundamental driving force behind an individual's actions, interests, or goals.

Intrinsic Motivation

The drive to engage in an activity for its own sake, rather than for some external reward or outcome.