When a Particular Negative Externality Affects a Very Large Number

question 171

Multiple Choice

When a particular negative externality affects a very large number of people, it is likely that

• A)government will not find it worthwhile to impose a corrective tax.
• B)private solutions to the problem will dominate any attempt by government to alleviate the problem.
• C)the solution to externalities suggested by the Coase theorem will work very well.
• D)the solution to externalities suggested by the Coase theorem will not work.

Interpret graphical representations of market shifts and the implications for equilibrium.

Apply principles of supply and demand to real-world scenarios, such as changes in consumer preference or production costs.

Analyze the effects of external shocks (e.g., weather conditions, recalls) on market supply and demand.

Understand the consequences of ignoring a notification to make payment to a new creditor after a Security Agreement is assigned.

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Definitions:

Title

A legal term referring to the rightful ownership of property, including the rights to use, sell, or lease it.

Paid

The state of having received money or compensation for services or goods.

Requirement of Writing

A legal principle that certain types of contracts or agreements must be in writing to be legally enforceable.

Sale of Goods Act

A legal framework that regulates the sale and purchase of goods, ensuring certain standards and rights are maintained between buyers and sellers.