The Distribution of Rights Among Parties Affected by an Externality

question 115

Multiple Choice

The distribution of rights among parties affected by an externality:

• A)hinders the ability of private parties to properly price the externality
• B)enhances the market incentive to reach an efficient solution
• C)determines who bears the cost of the solution but has no effect on the efficiency of this outcome
• D)affects the efficiency of the outcome, but does not determine who bears the cost

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Definitions:

Vibrios

Vibrios are a genus of Gram-negative bacteria, many of which are pathogenic, causing diseases such as cholera in humans.

Protozoans

Single-celled eukaryotic organisms, often parasitic, that can cause diseases in humans and other animals.

Proper Sanitation

Measures aimed at promoting health through prevention of human contact with the hazards of wastes by proper waste disposal and cleanliness.

Streptococci

A genus of coccus (spherical) bacteria that are often found in chains or pairs and can cause a variety of infections in humans and animals.