Regardless of Who Has the Property Rights to Environmental Resources

question 24

Multiple Choice

Regardless of who has the property rights to environmental resources

• A) net social gains are the same independent of who holds the property rights to pollute.
• B) net social gains differ depending upon who holds the property rights to pollute
• C) net gains accumulate to individuals, not society.
• D) a socially efficient equilibrium offers no net gains because MAC will equal MD.

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Definitions:

Hardwood Forest

Forests predominantly made up of deciduous trees that lose their leaves annually, known for their dense, high-quality wood.

Non-excludable

A property of a good or service that makes it impossible, or highly impractical, to prevent individuals from using the good or service once it is provided.

Public Goods

Goods that are non-excludable and non-rivalrous in consumption, meaning they can be consumed by everyone and one person's consumption does not reduce the availability for others.

Private Sector

The part of the economy that is owned and operated by individuals and companies for profit, as opposed to being owned by the government.