According to the Coase theorem, externalities

A. must usually be internalized by taxation or subsidy.
B. can be internalized by the market under certain conditions.
C. result when firms fail to maximize profits.
D. cannot be internalized if property rights are assigned.
E. are not relevant to the issue of market failure.


Answer: B

Economics

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The London gold fixing is an example of a(n)

A) dealer market. B) Walrasian auction market. C) brokered market. D) secondary market.

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The current price of a government bond is $920. The bond pays $90 in interest this year. At the end of the current year, the bond matures, and the principal of $1,000 is repaid. What is the return to the holder of this bond?

A) 1 percent B) 8 percent C) 9 percent D) 17 percent

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

Economics