The Coase theorem states that

A) government intervention is always needed if externalities are present.
B) assigning property rights is the only thing the government should do in a market economy.
C) under certain conditions, the property right to an activity will be acquired by the party that values it most.
D) a free-market equilibrium is the best solution to address externalities.


C

Economics

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When consumers have perfect information about the quality of the products they purchase, the problem of adverse selection is likely to arise

a. True b. False Indicate whether the statement is true or false

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Which of the following is a possible effect of automatic stabilizers on the federal budget?

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Economics