An Agreement in Which the Incentives of Both Parties Match

question 61

Multiple Choice

An agreement in which the incentives of both parties match their goals as closely as possible is:

• A) an X-inefficiency contract.
• B) a public good.
• C) an incentive-compatible contract.
• D) a corporate takeover contract.

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Definitions:

Hazardous Waste Sites

Locations where hazardous waste is stored, treated, or disposed of, potentially posing risks to human health and the environment.

CERCLA

The Comprehensive Environmental Response, Compensation, and Liability Act, a U.S. law designed to clean up sites contaminated with hazardous substances.

Air Pollution Control Equipment

Devices and systems designed to reduce or eliminate the emission of pollutants into the atmosphere, including filters, scrubbers, and catalytic converters.

Clean Air Act

A wide-ranging federal statute in the United States that governs emissions from both stationary and mobile sources, aimed at managing air pollution.