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Fishing, the Lumber Industry, Tourism, and Even City Buildings in Canada

Question 114

Multiple Choice

Fishing, the lumber industry, tourism, and even city buildings in Canada are harmed by acid rain, most of which comes from the United States.According to the Coase theorem, the problem is


A) easy to solve because the United States and Canada are geographically close
B) easy to solve because the United States and Canada are allies
C) easy to solve because international property rights are recognized among capitalist countries
D) hard to solve because international negotiations are more costly than domestic ones
E) hard to solve because Canadians have property rights to clean, nonacidic rain

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