Which of the Following Is the Most Likely to Prevent

question 17

Multiple Choice

Which of the following is the most likely to prevent Coasian solutions from solving externality problems?

• A) A single source of the externality
• B) A single victim of the externality
• C) Asymmetric information
• D) A lack of transaction costs
• E) An externality that takes effect immediately

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Definitions:

Groupthink

A phenomenon where the desire for harmony in a decision-making group leads to an irrational or dysfunctional decision-making outcome.

Organizations

Entities or groups of people structured and coordinated to pursue collective goals or carry out specific activities.

Team Work

The collaborative effort of a group to achieve a common goal or task in the most effective and efficient way.

Groupthink

A psychological phenomenon wherein the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.