Compare Two Situations

question 223

Multiple Choice

Compare two situations. (A) A firm is not legally responsible for damages that result from air pollution caused by its production of steel. (B) A firm is legally responsible for damages that result from its production of steel. Ronald Coase argued that

• A) bargaining between the firm and the victims of the air pollution caused by the firm will result in little reduction of pollution in either situation (A) or (B) because the firm has greater economic and political power than the victims.
• B) bargaining between the firm and the victims of the air pollution caused by the firm would lead to a greater reduction in pollution in situation (A) than situation (B).
• C) bargaining between the firm and the victims of the air pollution caused by the firm would lead to a smaller reduction in pollution in situation (A) than situation (B).
• D) bargaining between the firm and the victims of the air pollution caused by the firm would lead to an equal reduction in pollution in situation (A) and situation (B).

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Definitions:

Tet Offensive

Surprise attack by the Viet Cong and North Vietnamese during the Vietnamese NewYear of 1968; turned American public opinion strongly against the war in Vietnam.

Viet Cong

A political organization and army in South Vietnam and Cambodia that fought the United States and South Vietnamese governments, noted for their guerrilla warfare tactics during the Vietnam War.

North Vietnamese

Refers to the people or entities associated with North Vietnam, especially during the Vietnam War era when Vietnam was divided into North and South.

Lyndon Johnson

The 36th President of the United States, who served from 1963 to 1969, known for his significant contributions to civil rights legislation and domestic programs known as the Great Society.