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

question 23

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:

Easily Stored

Describes items or substances that can be stored without difficulty, often due to their compact size or non-perishable nature.

Caloric Expenditure

This refers to the total number of calories a person burns or expends through various activities, including basic bodily functions and physical activities.

Physical Fitness

A state of health and well-being achieved through regular physical activity, involving various attributes such as endurance, strength, and flexibility.

Physical Activity

Any bodily movement produced by skeletal muscles that require energy expenditure, including activities undertaken while working, playing, carrying out household chores, traveling, and engaging in recreational pursuits.