True-False-Uncertain. Respond to following statements as True, False, Uncertain and justify your claim. According to the Coase Theorem, government intervention is needed to solve externalities. It always makes sense when a public good is financed by the government. If A is Pareto efficient and B is Pareto inefficient, A must be a Pareto improvement over B. According to Arrow’s impossibility theorem, a democratic society will always make consistent decisions
True-False-Uncertain. Respond to following statements as True, False, Uncertain and justify your claim. According to the Coase Theorem, government intervention is needed to solve externalities. It always makes sense when a public good is financed by the government. If A is Pareto efficient and B is Pareto inefficient, A must be a Pareto improvement over B. According to Arrow’s impossibility theorem, a democratic society will always make consistent decisions
Chapter19: Externalities And Public Goods
Section: Chapter Questions
Problem 19.7P
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True-False-Uncertain. Respond to following statements as True, False, Uncertain and justify your claim.
According to the Coase Theorem, government intervention is needed to solve externalities.
It always makes sense when a public good is financed by the government.
If A is Pareto efficient and B is Pareto inefficient, A must be a Pareto improvement over B.
According to Arrow’s impossibility theorem, a democratic society will always make consistent decisions.
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