The Coase theorem states that
a. under certain circumstances government intervention is not needed to reach efficient outcomes when an externality is present.
b. government intervention is always required to reach an efficient outcome when an externality is present.
c. government intervention cannot lead to an efficient outcome when an externality is present.
d. only negative externalities can be resolved using government intervention.
a
Economics
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Refer to Figure 11.4. Which diagram illustrates the effect of an increase in the income tax rate?
A) A B) B C) C D) D
Economics
By 1774, the Southern colonies'
(a) share of total colonial wealth was the lowest. (b) wealth per capita was the highest. (c) land contributed very little to total wealth. (d) depended heavily on immigrant labor.
Economics