Compare Two Situations

question 20

Multiple Choice

Compare two situations.(A) A firm is not legally responsible for damages that result from air pollution caused by its production of steel.(B) A firm is legally responsible for damages that result from its production of steel.Ronald Coase argued that if the property rights are assigned and transactions costs are low,

• A)bargaining between the firm and the victims of the air pollution caused by the firm will result in little reduction of pollution in either situation (A)or (B)because the firm has greater economic and political power than the victims.
• B)bargaining between the firm and the victims of the air pollution caused by the firm would lead to a greater reduction in pollution in situation (A)than situation (B).
• C)bargaining between the firm and the victims of the air pollution caused by the firm would lead to a smaller reduction in pollution in situation (A)than situation (B).
• D)bargaining between the firm and the victims of the air pollution caused by the firm would lead to an equal reduction in pollution in situation (A)and situation (B).

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Definitions:

Deoxythymidine

A nucleoside component of DNA, composed of the base thymine attached to a deoxyribose sugar.

Reaction Products

Substances formed as a result of chemical reactions, determined by the reactants and the conditions under which the reaction occurs.

Uridine

A nucleoside compound formed when uracil is attached to a ribose ring (also known as ribofuranose) via a β-N1-glycosidic bond.

Ribofuranose

A sugar molecule that is a component of RNA, known for its furanose (five-membered oxygen-containing ring) form.