Which of the Following Is a True Statement

question 84

Multiple Choice

Which of the following is a true statement?

• A) Any property right system will yield a situation in which all externalities are internalized.
• B) Voluntary agreements can always yield a situation in which all externalities are internalized.
• C) Opportunity costs always exist with whoever has property rights.
• D) Opportunity costs turn external costs into social costs.

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Definitions:

Faulty Handrail

A handrail that is defective, broken, or improperly installed, posing a safety risk.

Assumption of the Risk

A legal doctrine that a person may not recover for injuries received from a dangerous activity if they voluntarily exposed themselves to the danger with full knowledge of the risks.

Zip Line

A zip line is an outdoor adventure activity involving a pulley suspended on a cable, usually made of stainless steel, mounted on a slope, allowing participants to travel from top to bottom through the air.

Express Assumption

A legal agreement where a party declares to take on specific responsibilities or risks.