The Coase theorem states that
A. under certain conditions, private parties can arrive at the efficient solution without government involvement.
B. the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
C. public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good.
D. if there are external costs in production, the government must intervene in the market to assure that the efficient level of output is produced.
Answer: A
You might also like to view...
In the IS-LM model, if interest rates rise while output falls the
a. money supply must have fallen. b. price level must have fallen. c. money supply must have risen. d. level of government spending must have fallen. e. none of the above.
Trade barriers should be removed to promote the welfare of the country. This is a(n)
A) positive statement. B) negative statement. C) inverse statement. D) normative statement.
Which of these statements describes inflation? a. It refers to the temporary rise and fall in the price of a particular good in a market. b. It refers to a one-time shift in the equilibrium price of a good
c. It refers to an increase in the demand for a particular good. d. It refers to an ongoing increase in prices from year to year.
Unemployment that is of a short duration to allow a person time to find a new job is