The Existence of Externalities Is Due Mainly to the Fact

question 64

Multiple Choice

The existence of externalities is due mainly to the fact that

• A) monopolies tend to produce too little of a good anyway.
• B) the optimal level of pollution is zero.
• C) pollution is not a serious problem.
• D) property rights are poorly defined.

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Definitions:

Limonene

A major component in the oil of citrus fruit peels, known for its distinctive lemon or orange aroma.

Terpene

A class of natural compounds built from isoprene units, characterized by their strong odors and roles in plant physiology and ecology.

Ozone

Ozone is a triatomic molecule, consisting of three oxygen atoms, known for its sharp smell and its role in the Earth's stratosphere, where it absorbs the majority of the sun's harmful ultraviolet radiation.

Dimethyl Sulfide

A sulfur-containing organic compound with the formula (CH3)2S, notable for its foul smell and role in the global sulfur cycle.