According to the Coase Theorem,there Will Be an Efficient Solution

question 57

Multiple Choice

According to the Coase theorem,there will be an efficient solution to the problem of toxic waste _____

• A)if the creator of the toxic waste is assigned the property right and the bargaining costs are high.
• B)if the victim of toxic waste is assigned the property right and the bargaining costs are high.
• C)regardless of which party is assigned the property right as long as the bargaining costs are small.
• D)if the property rights are shared equally between the creator and the victim of toxic waste.
• E)if the government intervenes.

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Definitions:

Instrumentality

The belief that a certain performance level is connected to achieving a desired outcome.

Expectancy Theory of Motivation

A psychological theory suggesting that people are motivated to engage in behaviors based on the expected outcomes and the value of those outcomes to them.

Administering an Unpleasant Outcome

The process of executing or delivering a negative or unfavorable result or decision.

Punish

The act of imposing a penalty or consequence on someone for their behavior or actions, often as a method of enforcing rules or discipline.