The Coase Theorem States That

question 183

Multiple Choice

The Coase theorem states that

• A)government intervention is always needed if externalities are present.
• B)assigning property rights is the only thing the government should do in a market economy.
• C)if transactions costs are low, private bargaining will result in an efficient solution to the problem of externalities.
• D)a free-market equilibrium is the best solution to address externalities.

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Definitions:

Quality of Finish

Refers to the surface texture, accuracy, and visual appearance of a manufactured part after production.

General Note

A notation on engineering drawings or documents that provides additional information applicable to the entirety of the drawing.

Finish Symbols

Symbols used in technical drawings to denote the surface finish required on parts, indicating the level of smoothness or texture desired.

Bilateral Tolerance

A type of tolerance that allows a dimension to vary equally in both positive and negative directions from the nominal value.