Which of the Following Statements Is Correct

question 424

Multiple Choice

Which of the following statements is correct?

• A)The establishment of property rights sometimes gives rise to market failure.
• B)The absence of property rights sometimes gives rise to market failure.
• C)In the context of public goods, the Coase theorem implies that total surplus in some markets can be improved by the elimination of property rights.
• D)Government regulation of private behavior, in response to market failure, can never improve social well-being.

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Definitions:

Percent Increase

A measure of the degree to which a quantity has grown compared to its original value, expressed as a percentage.

Trailers

Vehicles towed behind others, used for transporting goods or as mobile homes.

Weekly Salary

The amount of money or compensation that an employee receives on a weekly basis for their job.

Rate of Decrease

A measure of how rapidly a quantity decreases over time, typically expressed as a percentage.