The Lack of Management of Common-Property Externalities Is Often a Property

question 13

Multiple Choice

The lack of management of common-property externalities is often a property rights problem caused by the lack of __________ that assigns individual or small-group property rights.

• A) an institution
• B) tax law
• C) a market
• D) political pressure

---

Definitions:

Operating Expenses

The costs associated with running the day-to-day operations of a business, excluding the costs of goods sold.

Profit

The financial gain made in a transaction, calculated by subtracting the total costs from the total revenue.

Sale Price

The ultimate selling price of a product, once all discounts or promotional offers have been taken into account.

Gross Profit

The difference between the selling price and the unit cost of an item of merchandise. (Also called markup.)