Refer to the scenario above. If Alice wins the auction, the seller earns an average revenue of ________

The Coase theorem suggests that private solutions to an externality problem

a. are effective under all conditions. b. will usually allocate resources efficiently if private parties can bargain without cost. c. are only efficient when there are negative externalities. d. may not be possible because of the distribution of property rights.

A system in which anyone collecting antipoverty program benefits must accept a government-provided job is called