Question

question 25 · 1 point
according to economist ronald coase, the issue with negative externalities can be resolved by
select the correct answer below:
prohibiting externalities
properly defining property rights over resources
nationalizing all common resources
none of the above
content attribution
question 26 · 1 point
in the united states, the number of applications filed for patents beginning in the 1990s, due in part to the invention of the internet, which has led to many other inventions.
select the correct answer below:
decreased substantially
increased substantially
increased very slightly
remained unchanged

Explanation:

• Question 25: Ronald Coase's theorem states that if property rights are well - defined and transaction costs are low, private parties can bargain to resolve negative externalities. Prohibiting externalities is not practical as many activities have some form of externality. Nationalizing all common resources is a more extreme and not a Coase - theorem - based solution.
• Question 26: The invention of the internet in the 1990s led to a boom in technological innovation. With more inventions, more patent applications would be filed. A decrease in patent applications due to the internet (which spurs innovation) is counter - intuitive. A very slight increase or no change also do not align with the idea that the internet led to “many other inventions”.

Answer:

• Question 25: properly defining property rights over resources
• Question 26: increased substantially