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:

Relational Aggression

A form of aggression aimed at damaging or manipulating relationships, including social exclusion and spreading rumors.

Instrumental Aggression

Aggressive behavior aimed at achieving a specific goal or obtaining an object, not merely to cause harm.

Sociometric Status

A measure of an individual's acceptance and popularity within a peer group, based on social networks and interactions.

Basic Social Skills

Fundamental interpersonal abilities necessary for successful social interaction, including communication, empathy, and cooperation.