The Presence of a Negative Externality Is Likely to Give

question 59

Multiple Choice

The presence of a negative externality is likely to give rise to significant market failures when:

• A)​property rights are not well-defined.
• B)​property rights are well-defined.
• C)​there are few victims of pollution and few polluters.
• D)​transaction costs are relatively low.

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Definitions:

Gizzard

Of birds and some other animals, a digestive chamber lined with a hard material that grinds up food.

Acidic Chyme

The partially digested, acidic food mixture that moves from the stomach to the small intestine.

Heartburn

A discomforting burning sensation in the chest, usually occurring after eating, caused by stomach acid refluxing back into the esophagus.

Sphincter

Ring of muscle in a tubular organ or at a body opening.