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The Idea That Even in the Presence of Externalities an Economy

Question 131

Multiple Choice

The idea that even in the presence of externalities an economy can reach an efficient solution as long as transaction costs of making a deal are low and property rights are well-defined is known as:


A) a Pigouvian tax.
B) a network externality.
C) a technology spillover.
D) the Coase theorem.

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