The Coase Theorem States That

question 486

Multiple Choice

The Coase theorem states that

• A)under certain circumstances government intervention is not needed to reach efficient outcomes when an externality is present.
• B)government intervention is always required to reach an efficient outcome when an externality is present.
• C)government intervention cannot lead to an efficient outcome when an externality is present.
• D)only negative externalities can be resolved using government intervention.

---

Definitions:

Medical Model

An approach to health which treats mental and physical illnesses primarily through the use of drugs, surgery, or other medical interventions.

Western Cultures

Western cultures refer to societies primarily located in the Western part of the world, often characterized by traditions and systems of thought that have origins in Ancient Greece, Rome, and through subsequent European influence.

Psychological Perspective

An approach or viewpoint in psychology that emphasizes particular aspects of human behavior and mental processes.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a standardized text used by healthcare professionals to diagnose mental disorders.