The Coase theorem states that A) government intervention is ...

[Bernana]

The Coase theorem states that
 
  A) government intervention is always needed if externalities are present.
  B) assigning property rights is the only thing the government should do in a market economy.
  C) under certain conditions, the property right to an activity will be acquired by the party that values it most.
  D) a free-market equilibrium is the best solution to address externalities.

Question 2

The benevolent social planner wants to extract the ________ the limited resources we have been given, and her objective is to ________ the size of the economic pie.
 
  A) greatest amount of happiness from; minimize
  B) greatest amount of happiness from; maximize
  C) least productive of; minimize
  D) least productive of; maximize

[iceage]

Answer to Question 1

C

Answer to Question 2

B

[Bernana]

Thank you

[iceage]

No problemo