Which of the Following Must Be Present to Reach a Private

question 220

Multiple Choice

Which of the following must be present to reach a private solution to an externality problem?

• A) A majority of the parties affected by the externality must agree to a solution.
• B) The transaction costs to negotiate a solution must be relatively low.
• C) The total number of people, creators of the problem and those affected, must be relatively large to justify negotiating a solution.
• D) The government must approve the solution for it to be a legal solution.

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Definitions:

Epiphyseal Plates

Growth plates located at the ends of long bones, where new bone tissue is generated during childhood and adolescence to enable growth in length.

Mature Adult

An individual in the later stage of adulthood who has reached full physical and psychological development.

Long Bones

Bones that are longer than they are wide, primarily found in the arms (humerus, radius, ulna), legs (femur, tibia, fibula), fingers, and toes.

Metacarpals

Bones found in the hand that connect the fingers to the wrist.