The Idea That Individuals Can Reach an Efficient Equilibrium Through

question 25

Multiple Choice

The idea that individuals can reach an efficient equilibrium through private trades, even in the presence of an externality, is called:

• A)market failure.
• B)trade quotas.
• C)the Coase theorem.
• D)the invisible hand.

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Definitions:

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations and external investment sources.

Investing Activities

Transactions related to the acquisition or disposal of long-term assets and other investments not included in cash equivalents.

Bonds Payable

Long-term liabilities representing amounts owed by a corporation or government to bondholders, to be repaid at a specified future date.

Receipts

Records of transactions indicating payment made or received.