The Coase theorem suggests that private bargaining can solve externality problems if: MCQ with Answer and Explanation

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The Coase theorem suggests that private bargaining can solve externality problems if:

A. the government imposes taxes

B. transaction costs are low and property rights are clearly defined

C. transaction costs are high and property rights are unclear

D. the market is monopolized

Answer: Option B

Solution (By JKSSB Mock Tests)

The Coase theorem states that with low transaction costs and clearly defined property rights, private parties can resolve externalities.

This question belongs to: Economy GK Economy Set 1

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The 'Rangarajan Committee' on poverty submitted its report in which year?

A. 2014

B. 2016

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D. 2018

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Correct Answer: Option A

Explanation:
The Rangarajan Committee on poverty submitted its report in 2014.

This question belongs to: Economy GK Economy Set 1

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Correct Answer: Option D

Explanation:
GST liability depends on the place of supply and the nature of supply.

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Correct Answer: Option D

Explanation:
Intergenerational equity requires that the burden of financing public expenditure and debt is distributed fairly across generations so that future generations are not unduly burdened.

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