Refer to the Information Provided in Figure 16

question 87

Multiple Choice

Refer to the information provided in Figure 16.4 below to answer the question(s) that follow.
Los Angeles International Airport (LAX) is located next to Playa Del Rey. The noise from air traffic negatively affects individuals living in Playa Del Rey, however, this cost is not considered by airlines or air travelers. The airlines feel they have a right to use the airspace while the individuals living in Playa Del Rey feel they have the right to quiet. The following diagram depicts the marginal costs and marginal benefits associated with air travel. Figure 16.4
-Refer to Figure 16.4. Suppose the government assigns property rights to the residents of Playa Del Rey, then the airlines and the residents engage in negotiations. The resulting efficient level of air travel is

• A) 0 units.
• B) 100 units.
• C) 120 units.
• D) indeterminate from the given information.

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Definitions:

Social Comparison

A theory positing that individuals determine their own social and personal worth based on how they stack up against others they perceive as somehow faring better or worse.

Attribution Theory

A theory focused on how people interpret and understand their experiences by ascribing causes to behaviors and events.

Stereotype Threat

The risk of confirming negative stereotypes about an individual’s racial, ethnic, gender, or cultural group, which can hinder performance in various domains.

Jigsaw Classroom

An educational approach designed to minimize competition and maximize collaboration among students by giving each member of a group a piece of the overall puzzle to contribute.