QUESTION 3 Which of the following is not a source of transaction cost? O The Coase externality Free riding problem O Principal-agent problem O Incomplete property rights QUESTION 4 Evaluate the following statement: "Under the positive theory of common law, economic efficiency is more encouraged compared to the normative theory of common law. The positive theory of common law will therefore result in no change in social gain, nor economic, efficiency since a compatitive market is always optimized." True O False
QUESTION 3 Which of the following is not a source of transaction cost? O The Coase externality Free riding problem O Principal-agent problem O Incomplete property rights QUESTION 4 Evaluate the following statement: "Under the positive theory of common law, economic efficiency is more encouraged compared to the normative theory of common law. The positive theory of common law will therefore result in no change in social gain, nor economic, efficiency since a compatitive market is always optimized." True O False
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 40P: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in...
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