The Insight That People Can Always Arrive at Efficient Solutions

question 68

Multiple Choice

The insight that people can always arrive at efficient solutions to the problems caused by externalities if they can negotiate the purchase and sale of the right to perform activities that cause externalities is called the ________.

• A)Sherman Act
• B)Coase Theorem
• C)tragedy of the commons
• D)prisoner's dilemma

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Definitions:

Good Faith

Acting with honesty, fairness, and sincerity in transactions and legal matters without intent to defraud or seek unfair advantage.

Honesty in Fact

A standard of conduct that denotes a sincere, honest intention or belief, without any intent to deceive.

Performing Duties

The act of carrying out responsibilities or tasks that are part of one's job or role.

Partial Deliveries

In commercial transactions, the act of delivering a portion of goods distinct from the total quantity stipulated in a contract, often subject to agreement by the involved parties.