When Producers Are Hard to Monitor and Marginal Costs Differ

question 113

Multiple Choice

When producers are hard to monitor and marginal costs differ across producers, _______ are an effective method to achieve efficient use of a _______.

• A) individual transferable quotas; common resource
• B) individual transferable quotas; excludable good
• C) marginal private benefits; public good
• D) individual transferable quotas; public good

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Definitions:

Transnational Bodies

Organizations or entities that operate across national boundaries, influencing or governing aspects of global affairs.

Autonomy

The right or condition of self-government, or the capacity of an individual to make an informed, un-coerced decision.

National Governments

The political authorities that govern a nation, responsible for creating laws, policies, and managing the country's affairs.

International Tourists

Individuals who travel to a country other than their own for leisure, business, or other purposes, not including permanent relocation.