Refer to the Information Provided in Figure 16

question 97

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 airlines, 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:

External Attributions

The process of attributing the cause of behavior to situational or external factors rather than to internal characteristics.

Self-Blaming Attributions

The tendency to attribute personal failures or negative events to one's own deficiencies or actions.

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Depression

A mental disorder that involves a persistent feeling of sadness or a lack of interest in life's activities, majorly interrupting ordinary daily routines.