The Best Method to Reduce Pollution Is

question 297

Multiple Choice

The best method to reduce pollution is

• A) to never start polluting.
• B) to establish private property rights.
• C) dependent upon the characteristics of the resources and the transaction costs.
• D) dependent upon the quality of government bureaucrats and the level of greed in the society.

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Definitions:

Donations

Voluntary transfers of resources, including money or goods, from one party to another without the expectation of receiving something in return.

External Benefits

The positive effects of a production or consumption activity on third parties who are not directly involved in the transaction.

Efficient Level

The optimal point of production or operation where resources are utilized in the most effective manner, without waste, to achieve a desired outcome or maximized benefit.

External Costs

Costs caused by a business activity that are not borne by the business itself, but by other people or the environment.