If Property Rights Are Very Hard to Assign and Transactions

question 35

Multiple Choice

If property rights are very hard to assign and transactions costs are particularly high, then, given the Coase Theorem, externalities:

• A) may reduce the efficiency of resource allocation.
• B) would leave resource efficiency unchanged.
• C) allow resource allocations to remain efficient.
• D) have not relationship to efficiency.

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Definitions:

General Systems Theory

A theoretical framework proposing that complex systems share organizing principles, regardless of the field of application.

Structural-Functional Theory

A sociological perspective that sees society as a complex system whose parts work together to promote solidarity and stability.

Delayed Childbearing

Choosing to postpone pregnancy and childbirth until a later age.

Postparental Family

A stage in family life when the children have left home, and the parents are left to continue their life together without them.