One Reason That Private Solutions to Externalities Do Not Always

question 201

Multiple Choice

One reason that private solutions to externalities do not always work is that

• A)government intervention negates the benefits of positive externalities.
• B)some people benefit from externalities.
• C)interested parties incur costs in the bargaining process.
• D)charities are not well organized.

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Definitions:

Learned Helplessness

The situation in which someone feels powerless, due to experiencing a traumatic incident or repeated failures to accomplish goals.

Implications

Possible results or effects of an action or decision, often indirect or not immediately obvious.

Internal Locus

The belief that one has control over their own life and outcomes, as opposed to external forces having that control.

Physically Abused

Experiencing harm or injury to the body inflicted by another person.