Question

the coase theorem states that
if transactions costs are low, private bargaining will result in an efficient solution to the problem of externalities.
a free market equilibrium is the best solution to address externalities.
assigning property rights is the only thing the government should do in a market economy.
government intervention is always needed if externalities are present.
question 4
1 pts
what are property rights?
the title to ownership of any physical asset
the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it
a legal document verifying ownership of intangible assets
the right of the government to appropriate private assets for the good of society

Explanation:

The Coase theorem emphasizes that when transaction costs are low, private bargaining can efficiently handle externalities. Property rights involve exclusive use and transfer rights (buy/sell) for individuals/firms over their property.

Answer:

For the first question (Coase theorem), the correct option is “If transactions costs are low, private bargaining will result in an efficient solution to the problem of externalities”.
For the second question (property rights), the correct option is “the rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it”.