Final answer:
According to economist Ronald Coase, resolving the issue of constructing a highway through the fields of local farmers requires clearly defining property rights. If the farmer has a property right to their field, they can seek compensation for any damage caused by the highway construction. If the government has the right to construct the highway, they will be required to compensate the farmer.
Step-by-step explanation:
According to economist Ronald Coase, the issue of constructing a highway through the fields of local farmers can be resolved by clearly defining the property rights of the farmer and the government. Property rights refer to the legal rights of ownership that others are not allowed to infringe without paying compensation. If the farmer has a well-defined legal responsibility to their field, they can seek compensation from the government for any damage caused by the construction of the highway. On the other hand, if the government has a well-defined legal responsibility to construct the highway, they may have the right to do so, but will be required to compensate the farmer for any damage caused.
This issue relates to the field of Social Studies as it involves understanding property rights, government authority, and the balance between individual and public interests. It is a topic that is often discussed in relation to land use, infrastructure development, and the rights of private individuals or communities.