Questions: Fill In the Blank Question Well-defined property rights, low transaction costs, and resources that naturally gravitate toward the highest-valued function describe the theorem. (Enter one word in the blank.)

Fill In the Blank Question

Well-defined property rights, low transaction costs, and resources that naturally gravitate toward the highest-valued function describe the theorem. (Enter one word in the blank.)

Transcript text: Fill In the Blank Question Well-defined property rights, low transaction costs, and resources that naturally gravitate toward the highest-valued function describe the $\square$ theorem. (Enter one word in the blank.)

Solution

The answer is: Coase

Explanation: The statement describes the Coase Theorem, which is a concept in economics and law. The Coase Theorem posits that if property rights are well-defined and transaction costs are low, resources will be allocated efficiently to their highest-valued use, regardless of who initially owns the rights. This is because parties will negotiate to correct any inefficiencies.

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