The Coase Theorem Asserts That, in the Presence of Externalities

question 406

Multiple Choice

The Coase theorem asserts that, in the presence of externalities,

• A)private economic actors sometimes can reach a bargain that produces an efficient outcome.
• B)private economic actors always can reach a bargain that makes everyone better off.
• C)private solutions cannot be very effective.
• D)corrective taxes cannot be very effective.

---

Definitions:

Cultural Scripts

Prescriptive norms and expectations about behavior and beliefs that are culturally specific, guiding how individuals within a community should act and think.

Sexual Expression

The ways in which we engage in sexual behaviors.

Heteronormativity

The assumption or belief that heterosexual relationships are the norm or default, often excluding or marginalizing other forms of sexual orientation and relationships.

Heterosexuality

A sexual orientation characterized by a romantic or sexual attraction to people of the opposite sex.