Quotations

Question 1

Paul Heyne’s definition of justice

Answer 1

Fulfillment of legitimate expectations.

Question 2

Paul Heyne’s fatal flaw of capitalism

Answer 2

Failure to recognize the importance of rules.

Question 3

What is the Coase Theorem?

Answer 3

When conflicting property rights occur, bargaining between the parties involved will lead to an efficient outcome regardless of which party is ultimately awarded the property rights, as long as the transaction costs associated with bargaining are negligible.