Examlex

Solved

Private Parties May Choose Not to Solve an Externality Problem

question 166

True/False

Private parties may choose not to solve an externality problem if the transaction costs are large enough.


Definitions:

Total Allowable Catch (TAC)

A fishery management tool that sets a cap on the total amount of a particular fish species that can be caught over a specified period.

Sustainable Levels

Levels of production, consumption, and behavior that meet current needs without compromising the ability of future generations to meet their own needs.

Individual Transferable Quota (ITQ)

A fisheries management tool that allocates a certain quantity of fish that can be caught by individuals or companies.

Market Price

The present cost at which an item or service may be purchased or sold within a specific market.

Related Questions