Legally Established Titles to Ownership, Use and Disposal of Factors
Legally established titles to ownership, use and disposal of factors of production and goods and services are called ________ rights.
One reason why property rights help achieve an efficient level of pollution is because property rights
A) eliminate marginal private costs.
B) force the marginal social cost to zero.
C) change the marginal external cost so that it is equal to the marginal social benefit.
D) force the marginal private cost to equal the marginal social cost.
E) force the marginal external cost to a lower level than marginal private cost.
The Coase theorem deals with the problem of pollution by
A) making all polluters stop polluting.
B) giving the government regulatory power over polluters.
C) having the government take over ownership of all polluting processes.
D) establishing and enforcing private property rights.
E) allowing the government to set the proper emissions charge.
Transactions costs are the
A) external costs when a firm pollutes.
B) reason why taxes cannot affect the inefficiency resulting from an external cost.
C) costs of using the Coase theorem.
D) external marginal costs of the externality.
E) opportunity costs of conducting a transaction.