The Coase theorem states that O under certain conditions, private parties can arrive at the efficient solution without government involvement. O public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good. O the private sector will fail to produce the efficient amount of a public good because of the free-rider problem. O if there are external costs in production, the government must intervene in the market to assure that the efficient level of output is produced.Property rights are protected by O rivalry and exeludability. 0 taxes and subsidies. O injunctions and liability roles. O bargaining and negotiation. In any case where there is a negative externality, it is better to form a government agency to solve the problem. O FALSE O TRUEAn efficient outcome can always be reached by requiring the individual who produces the externality to fully compensate individuals for any damage inflicted. O TRUE O FALSEWhich of the following contains most of the characteristics of a public good? O Trash collection O National defense O Education O A public libraryA national campaign is asking for contributions of $1.00 per citizen to fund the building of the September 11th memorial in New York City. The total cost of the memorial is estimated to be $260 million. You decide not to contribute, because your contribution would be small relative to the total that it won't make any difference whether you contribute or not. This is an example of the ________ problem. 0 nonrival in consumption Q free-rider O drop-in-the-bucket O nonexcludable Private goods are Ononrival in consumption and their benefits are excludable. Ononrival in consumption and their benefits are nonexcludable. O rival in consumption and their benefits are excludable. O rival in consumption and their benefits are nonexcludable.A television signal sent by cable is in consumption and viewers are O rival; excludable O nonrival; nonexcludable O nonrival; excludable O rival; nonexcludableM C M B Dollars, cost. benet {l lU'UI [le Quantity of air travel Refer to the gure above. Suppose the government assigns property rights to the airlines. No negotiations occur between the parties. The resulting level of air travel is ________ . O Indeterminate from the given information. Q 120 units 0 100 units C) 0 units Refer to the figure above. Suppose the government assigns property rights to the airlines. No negotiations occur between the parties. The marginal damage cost associated with the resulting level of air travel is O $120 O $385 O $265 O $25