When There Are Externalities, Economic Efficiency Can Be Achieved Without

question 128

Multiple Choice

When there are externalities, economic efficiency can be achieved without government intervention:

• A) at no time.
• B) when the externality affects many people and property rights are not well defined.
• C) when the externality affects many people and property rights are well defined.
• D) when the externality affects only a few parties and property rights are not well defined.
• E) when the externality affects only a few parties and property rights are well defined.

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Definitions:

Socioeconomic Status

A combined measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

Victims

Individuals who suffer harm as a result of crime, accident, or other events or actions.

Hormonal Changes

Adjustments in the levels and activity of hormones in the body, which can affect physical and emotional health, commonly occurring during puberty, pregnancy, menopause, and under stress.

Life Demands

The various pressures and obligations that individuals face in their daily life, including work, family, and social responsibilities.