According to the Coase Theorem, in the Presence of Externalities

question 354

Multiple Choice

According to the Coase theorem, in the presence of externalities

• A)private parties can bargain to reach an efficient outcome.
• B)government assistance is necessary to reach an efficient outcome.
• C)the assignment of legal rights can prevent externalities.
• D)the initial distribution of property rights will determine the efficient outcome.

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Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, where an association is made between a behavior and a consequence for that behavior.

Observational Learning

The method of acquiring behaviors through observing and replicating others.

Contact Sports

Sports that involve physical contact between players as a part of the game, such as football or hockey.

Gender Roles

The social and behavioral norms that are widely considered appropriate for individuals of a particular gender within a specific culture or society.