What the Coase theorem says — with zero transaction costs, parties negotiate efficient outcomes

What is the principle of Pareto efficiency in welfare economics and how does it relate to the concept of market equilibrium?

Pareto efficiency ensures no welfare improvement without disadvantaging others, aligning with market equilibrium where no trades can make someone better off without harming others

What Friedman meant by 'There is no such thing as a free lunch'

No lender or government can provide unlimited resources without cost

What the efficient market hypothesis claims — prices reflect all available information

Efficient Market Hypothesis: Prices incorporate all publicly available information

What supply and demand equilibrium is — the price where quantity supplied equals quantity demanded

Price at which market clears, Qs = Qd

What the tragedy of the commons describes — shared resources get overused without regulation

Tragedy of the commons: Unregulated shared resources lead to depletion

What laissez-faire economics argues — minimal government intervention in markets

Laissez-faire economics argues for limited government involvement in economic activities