The Coase theorem states that when externalities are present, under certain conditions

a) private parties can achieve the efficient outcome if there is government intervention

b) private parties can achieve the efficient outcome without government intervention

c) private parties can never achieve an efficient outcome

d) private parties will hold out for a better deal, making achieving the efficient outcome impossible

It is difficult to provide the efficient quantity of a public good since efficiency would require that the government

a) know everyone in society's willingness to pay

b) tax society in order to provide public goods

c) put up with free-riders

d) use inefficient private markets to provide public goods to society

When asymmetric information exists in a transaction between two parties

a) one party has more information that the other party

b) both parties have access to the same information

c) both parties do not have access to important information about the transaction

d) the government must step in to regulate the transaction