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Naya [18.7K]
4 years ago
11

A coase solution to a problem of externality insures ensures that a socially efficient outcome is to: 1)internalize the external

ity through taxes2)internalize the externality through subsidies3)maximize the joint welfare, irrespective of the right of ownership. 4)stop production if there is any externality.5)invite other private partners to share the burden of externality.
Business
1 answer:
Greeley [361]4 years ago
6 0

Answer:

The correct answer is number "3": maximize the joint welfare, irrespective of the right of ownership.

Explanation:

Externalities are the side effects of the economy: pollution, noise, unequal distribution, immigration, and resource exploitation are a few examples. the Coase Theorem is a legal and economic theory that looks for economic efficiency in front of externalities like the one described above. In pursuing a Coase solution for externalities that could lead to a socially efficient outcome,  increasing the numbers of welfare so enough less favored people and immigrants can have a roof to sleep under might be a good option.

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Answer:

Answer is D. I, II, and III

Refer below.

Explanation:

You own $75,000 worth of stocks, and you are worried the price may fall by year end in 6 months. You are considering using either puts or calls to hedge the position. Given this, the following statements are correct:

I, II, and III

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3 years ago
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Whitman and Greene are partners in a real estate venture. At January 1, 2020, their respective capital balances were $200,000 an
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4 years ago
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Answer:

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Explanation:

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The purpose of a budget is to track your income and your spending. true or false?
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3 0
3 years ago
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Lump-sum taxes are rarely used in the real world because:_______________
labwork [276]

Answer:

c. lump-sum taxes are often viewed as unfair because they take the same amount of money from both poor and rich.

Explanation:

To understand this question, you have to first understand what lump-sum taxes are.

Lump-sum taxes are a system of taxes where everybody pays the same amount of tax no matter their economic status, or their actions. Basically, lump-sum taxes take the same amount of money from the rich and the poor, hugely increasing the burden on the poor and lessening that of the rich.

As an example, a lump-sum tax of $100 would require everybody to pay $100. To a person earning, say $120, that would be a huge hit, and be a huge burden on his normal life. However, to a rich person who earns, say, $10000, that would be much more easier for the rich person.

Hence, lump-sum taxes are often viewed as unfair because of the unfair advantage the rich have over the poor in tax-paying.

Hope this helped!

4 0
3 years ago
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