For Voluntary Action to Correct an Externality

question 293

Multiple Choice

For voluntary action to correct an externality

• A) transaction costs have to be high.
• B) transaction costs have to be low.
• C) transaction costs have to be split evenly between all of the parties involved.
• D) transaction costs are irrelevant.

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Definitions:

Addition

A mathematical operation where two or more quantities are combined to make a sum.

Time-Out

A disciplinary technique used to remove an individual from an environment where unacceptable behavior has occurred, to encourage reflection and calm down.

Improve

To make or become better; to enhance the quality, value, or performance of something.

Positive Reinforcer

A stimulus which, when presented after a behavior, increases the likelihood of that behavior occurring again in the future.