Ronald Coase was awarded the 1991 Nobel Prize in Economics primarily for addressing problems related to externalities. Which of the following describes Coase's work?
A) Coase argued that government intervention is necessary to achieve economic efficiency in markets that are affected by externalities.
B) Coase proved that a competitive market achieved a greater degree of economic efficiency than a non-competitive market when externalities occur.
C) Coase proved that economic efficiency cannot be achieved in a market that is affected by positive or negative externalities.
D) Coase argued that under some circumstances private solutions to the problems of externalities will occur.
D
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The elasticity of demand for a particular perfectly competitive firm's output is positively related to the number of firms supplying the market
Indicate whether the statement is true or false
Externalities tend to cause markets to be
a. inefficient. b. unequal. c. unnecessary. d. overwhelmed.
A new U.S. import quota on imported steel would be likely to:
A. raise the cost of production to steel-using American firms. B. generate tax revenue to the government. C. decrease U.S. production of steel. D. increase the production of steel-using American firms.
Fifteen years ago, China _________________ with the countries of Europe. Today, China ______________________ most European countries
A) traded a great deal; is not a trading partner with B) traded a great deal; is rarely a trading partner for C) did not trade much; is one of the top five trading partners for D) did not trade much; is rarely a trading partner for