According to Pigou the Best Way to Deal with a Negative

question 29

Multiple Choice

According to Pigou the best way to deal with a negative externality is to

• A)Allow both parties to negotiate
• B)Assign liability to the party with the highest cost of prevention
• C)Assign liability to the party with the lowest cost of prevention
• D)Tax it

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Definitions:

Developmental Crises

Periods of significant disruption or challenge during the process of growth that require an individual to adapt or face potential setbacks in development.

Intelligence Tests

Standardized assessments designed to measure human intelligence and cognitive abilities.

Piaget

A psychologist from Switzerland renowned for his groundbreaking contributions to the development of children, especially his conceptual framework on the stages of cognitive growth.

Logical Processes

Cognitive operations used in reasoning, problem solving, and decision making, which follow systematic patterns of thinking.