Which of the Following Statements Is Not Correct

question 178

Multiple Choice

Which of the following statements is not correct?

• A)Patents help internalize the externalities associated with technological advances.
• B)Economists typically prefer regulations to corrective taxes because regulations provide more incentives for firms to seek continued reductions in pollution.
• C)Allowing firms to trade pollution permits will lower the total cost of reducing pollution.
• D)A big impediment to implementing the Coase theorem in many cases is high transactions costs.

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Definitions:

Adaptation-Level Phenomenon

The tendency of humans to quickly adapt to a new situation or environment, making it the new normal.

Biofeedback

A technique that teaches individuals to control physiological processes such as heart rate, using monitoring devices to provide information on bodily functions.

Internal Locus

Belief that one has control over their life events and outcomes, as opposed to external forces being responsible.

Emotion-Focused Coping

Strategies aimed at managing and reducing the emotional distress associated with a situation.