Private Solutions to Externalities Are Most Likely to Occur When

question 78

Multiple Choice

Private solutions to externalities are most likely to occur when there are:

• A) well-defined property rights and low transaction costs.
• B) communal property rights and large numbers of sellers.
• C) private property rights and high transaction costs.
• D) communal property rights and large numbers of buyers and sellers with equal bargaining power.

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Definitions:

In-Group Goals

Objectives or targets shared by members of a group that identify with each other and perceive themselves as part of the same group.

Big Five

A model in psychology that outlines five major dimensions of human personality traits: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.

Emotional Stability

A personality trait characterized by the consistency of one's emotional state and a low propensity to experience negative emotions under stress.

Openness

A quality of being willing to consider new ideas, experiences, and information without prejudice.