Why Can't Private Individuals Always Internalize an Externality Without the Help

question 233

Multiple Choice

Why can't private individuals always internalize an externality without the help of government?

• A)Legal restrictions prevent side payments between individuals.
• B)Transactions costs may be too high.
• C)Side payments between individuals are inefficient.
• D)Side payments between individuals are insufficient.

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Definitions:

Cultural Biases

Prejudices or predispositions toward one’s own culture or cultural perspectives, often at the expense of other cultures or viewpoints.

Ethnic Biases

Prejudices or discriminations based on ethnic background or identity.

Nutrition Counseling

A supportive process guiding a client toward nutritional well-being.

Nutritional Health

The condition of an individual's health as influenced by the intake and utilization of nutrients.