Consider the Following Problems: Overcrowded Public Highways,overfishing in the Ocean,polluted

question 42

Multiple Choice

Consider the following problems: Overcrowded public highways,overfishing in the ocean,polluted air,and the near-extinction of the wild rhinoceros.What do these problems have in common?

• A) Private markets could easily solve them if governments left the markets alone.
• B) They would all go away if the government sponsored an intensive public-information campaign.
• C) They are all the result of a failure to establish clear property rights over something of value.
• D) They are all the result of a failure of corrective taxes.

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Definitions:

Bank Draft

A payment instrument issued by a bank on behalf of its customer, directing the payment of a certain amount to a named individual or entity.

Certified Check

A check guaranteed by a bank, confirming that the drawer has enough funds to cover the amount.

Drawer

In financial terms, the party that writes or issues a check or draft instructing a payment to be made.

Rebate Check

A refund or discount on products or services, often sent to consumers in the form of a check after a purchase.