61) The Coase Theorem points out that externality problems can be eliminated if the number of parties involved is small and if property rights A) are granted solely to consumers. B) are granted solely to producers. C) are eliminated. D) are granted to either consumers or producers and transactions costs are low. 62) The Coase Theorem says that which of the following is necessary to lead to an efficient use of resources? A) presence of transaction costs B) existence of property rights C) government intervention D) All of the above answers are correct. 63) According to the Coase theorem, which of the following are necessary for the efficient levels of pollution to be achieved? I.Property rights are defined. II.Transactions costs are low. A) I only B) II only C) both I and II D) neither I nor II 64) Which condition(s) must exist for the Coase Theorem to hold? I.Property rights must exist. II.Transactions costs must be measurable. III.A small number of parties must be involved. A) I and II only B) I and III only C) II and III only D) I, II and III 65) The Coase theorem is the proposition that if property rights exist, the number of parties is small, and transactions costs are low, A) external costs result in deadweight losses. B) external benefits result in deadweight losses. C) private transactions are efficient. D) public transactions are efficient. 66) The Coase Theorem is the proposition that private economic transactions are efficient if the number of involved parties is small, if property rights ________, and transactions costs are ________. A) exist; high B) exist; low C) do not exist; high D) do not exist; low 67) According to the Coase theorem, part of what is needed for private transactions to be efficient is that property rights A) must be defined, but it does not matter who owns the property. B) must be defined, and it is crucial as to who owns the property. C) need not be defined as long as there are no transactions costs present. D) need to be defined by the government to avoid producers from exploiting high transactions costs. 68) A key contribution of Ronald Coase is that he pointed out that private transactions are efficient when the number of parties involved is small A) and when property rights are well defined and transactions costs are low. B) and when property rights do not exist. C) and that property rights are irrelevant to the existence of externalities. D) and when corporations are not greedy. 69) The Coase theorem states that if transaction costs are low, the number of parties is small, and property rights are well established, A) the government must intervene to eliminate any externalities in the market. B) private transactions are efficient. C) there will be no pollution. D) Both answers B and C are correct. 70) A large farming operation which uses a potent fertilizer is located up river from a trout farmer. If property rights of the river exist and transactions costs are low, the amount of pollution will be ________. A) efficient only if the trout farmer owns the river B) inefficient if the farming operation owns the river C) efficient if either the farming operation or the trout farmer own the river D
61) The Coase Theorem points out that externality problems can be eliminated if the number of parties involved is small and if property rights
A) are granted solely to consumers.
B) are granted solely to producers.
C) are eliminated.
D) are granted to either consumers or producers and transactions costs are low.
62) The Coase Theorem says that which of the following is necessary to lead to an efficient use of resources?
A) presence of transaction costs
B) existence of property rights
C) government intervention
D) All of the above answers are correct.
63) According to the Coase theorem, which of the following are necessary for the efficient levels of pollution to be achieved?
I.Property rights are defined.
II.Transactions costs are low.
A) I only
B) II only
C) both I and II
D) neither I nor II
64) Which condition(s) must exist for the Coase Theorem to hold?
I.Property rights must exist.
II.Transactions costs must be measurable.
III.A small number of parties must be involved.
A) I and II only
B) I and III only
C) II and III only
D) I, II and III
65) The Coase theorem is the proposition that if property rights exist, the number of parties is small, and transactions costs are low,
A) external costs result in
B) external benefits result in deadweight losses.
C) private transactions are efficient.
D) public transactions are efficient.
66) The Coase Theorem is the proposition that private economic transactions are efficient if the number of involved parties is small, if property rights ________, and transactions costs are ________.
A) exist; high
B) exist; low
C) do not exist; high
D) do not exist; low
67) According to the Coase theorem, part of what is needed for private transactions to be efficient is that property rights
A) must be defined, but it does not matter who owns the property.
B) must be defined, and it is crucial as to who owns the property.
C) need not be defined as long as there are no transactions costs present.
D) need to be defined by the government to avoid producers from exploiting high transactions costs.
68) A key contribution of Ronald Coase is that he pointed out that private transactions are efficient when the number of parties involved is small
A) and when property rights are well defined and transactions costs are low.
B) and when property rights do not exist.
C) and that property rights are irrelevant to the existence of externalities.
D) and when corporations are not greedy.
69) The Coase theorem states that if transaction costs are low, the number of parties is small, and property rights are well established,
A) the government must intervene to eliminate any externalities in the market.
B) private transactions are efficient.
C) there will be no pollution.
D) Both answers B and C are correct.
70) A large farming operation which uses a potent fertilizer is located up river from a trout farmer. If property rights of the river exist and transactions costs are low, the amount of pollution will be ________.
A) efficient only if the trout farmer owns the river
B) inefficient if the farming operation owns the river
C) efficient if either the farming operation or the trout farmer own the river
D
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