Answer the following statement(s) true (T) or false (F)

1. In the absence of transactions costs, changes in property rights have no effect on economic efficiency.
2. In the absence of transactions costs, changes in property rights have no effect on the distribution of income.
3. Changes in property rights will not affect the allocation of resources as long as transactions costs are zero and the subsequent effects on market demand are negligible.
4. The weak Coase theorem is true when reallocation of property rights have negligible income effects .
5. According to the Coase Theorem, in the absence of transactions costs, recipients of an external benefit can be expected to offer a bribe in exchange for greater production.

1. True
2. False
3. True
4. False
5. True