The Downside to Targeting Specific Activities Rather Than the Externality

question 32

Multiple Choice

The downside to targeting specific activities rather than the externality itself is:

• A) it risks misaligning the incentives that producers and consumers face with the goal of minimizing the externality.
• B) it requires a number of different activities to be identified and several different policies to be written, which can be cumbersome and difficult to manage.
• C) any one activity is likely to not make a significant difference in the presence of an externality.
• D) All of these statements are true.

Understand the statutory limitations and the implications for breach of warranty and other related claims.

Distinguish between contract enforcement and social policy objectives in contractual and tort actions.

Identify how contractual obligations of sellers/lessors and buyers/lessees are determined, encompassing the UCC, custom, and agreements.

Understand the international application of contract law principles, focusing on liquidated damages in different jurisdictions.

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Definitions:

Vice President

A person who is second in command in an organization, government, or corporation, directly below the president.

Ethology

The scientific study of animal behavior, often with a focus on behavior under natural conditions, and the understanding of behavior from an evolutionary perspective.

Biologically-Oriented

A perspective or approach that focuses on the biological or genetic factors in the study of organisms or behaviors.

Development

The process of growth or progression through a series of progressive changes, typically from a simpler to a more complex or better state.