The Coase Theorem Reminds Us That Efficiency Is All About

question 102

Multiple Choice

The Coase theorem reminds us that efficiency is all about ____________________ and says nothing about ______________________.

• A) maximizing total surplus; the distribution of that surplus
• B) equitably distributing surplus; maximizing that surplus
• C) who gets the most surplus; whether that's a fair outcome
• D) None of these statements is true.

---

Definitions:

Cold War

A period of geopolitical tension between the Soviet Union and the United States and their respective allies, from the late 1940s to 1991, without direct military conflict.

Social Contract

A theory or model that originated during the Age of Enlightenment and commonly refers to the implicit agreement among the members of a society to cooperate for social benefits, such as sacrificing some individual freedom for state protection.

Labor Disputes

Conflicts between employers and employees, often over issues like wages, working conditions, and union rights, which can lead to strikes, negotiations, and legislation.

National Association

A group or organization that operates across an entire nation, typically focused on promoting the interests of a specific profession, cause, or activity.