What Economic Argument Suggests That If Transactions Costs Are Sufficiently

question 506

Multiple Choice

What economic argument suggests that if transactions costs are sufficiently low, the equilibrium is economically efficient regardless of how property rights are distributed?

• A) the Coase theorem
• B) the laws of supply and demand
• C) the law of comparative advantage
• D) the law of externalities

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Definitions:

Transform Fault

A type of fault where two tectonic plates slide past each other horizontally, often associated with significant seismic activity.

Continental Rifting

The process where a continent stretches and splits along a rift, often leading to the formation of a new ocean basin.

Ocean Basin

The deeper parts of the ocean, especially those that are not underlain by continental crust.

Uplift

The process by which areas of the Earth's crust are raised to higher elevations, often as a result of geological forces such as tectonic movements.