Economics · Welfare Economics
Assertion (A): When transaction costs are zero, the allocation of resources is efficient regardless of the initial assignment of property rights. Reason (R): Parties can bargain costlessly to internalize externalities.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Both A and R are false
- 2A is false but R is true
- 3Both A and R are true but R does not explain A
- 4Both A and R are true and R explains A✓
Correct answer
Both A and R are true and R explains A
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Economics?
Practice full-length Economics mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Welfare Economics MCQs →Want more practice questions on Welfare Economics?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · Welfare Economics