Government Invention Is Required to Solve Externality Problems If ________

question 74

Multiple Choice

Government invention is required to solve externality problems if ________.

• A) transaction costs associated with private negotiations are low
• B) the number of people affected by the externality is small
• C) the number of people affected by the externality is large
• D) property rights are clearly defined

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Definitions:

Negative Terminal

The terminal of an electrical device (such as a battery) through which current flows out, typically regarded as the source of electrons.

Cathode

The negative terminal of an electric device.

Lead-acid Batteries

A type of rechargeable battery that uses lead peroxide and sponge lead, employing a sulfuric acid electrolyte.

Electrolyte

A substance that produces an electrically conducting solution when dissolved in a polar solvent, such as water, facilitating the flow of electric charge.