Given High Transactions Costs, the Best Way to Deal with a Positive

question 20

Multiple Choice

Given high transactions costs, the best way to deal with a positive externality is

• A)To tax it
• B)To subsidize it
• C)To allow both parties to negotiate
• D)To limit the extent of the externality

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Definitions:

Acute Medical Condition

A sudden onset of a disease or disorder that requires immediate care, typically characterized by severe and abrupt symptoms.

Chronic

Describing a condition or disease that is persistent or long-lasting in its effects, often for the duration of one's life.

Gastrointestinal

Referring to the stomach and intestines, and related to the process of digestion and the management of diseases affecting this system.

Upper Respiratory

Pertaining to the upper part of the respiratory system, including the nose, throat, and trachea.