A Liability Rule

question 37

Multiple Choice

A liability rule:

• A) involves the use of taxes or fees to remedy negative externalities.
• B) involves the use of subsidies to remedy negative externalities.
• C) is a legal principle requiring a party who takes an action that harms others to compensate the affected parties for some or all of their losses.
• D) requires that victims of an externality pay a tax to the producers of the externality.

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Definitions:

Obturator Foramen

A large opening in the hip bone through which nerves and blood vessels pass.

Fovea Capitis

The Fovea Capitis is a small, central pit on the head of the femur, where the ligament of the head of the femur attaches.

Ilium

The broad, upper part of the hip bone, one of three bones that fuse together to form the pelvis.

Acetabulum

The Acetabulum is the concave surface of the pelvis that receives the head of the femur, forming the hip joint.