The Optimal Quantity of a Negative Externality Is Zero If

question 95

Multiple Choice

The optimal quantity of a negative externality is zero if:

• A)it kills many people.
• B)it is costly to negotiate a Coasean solution.
• C)people vote against it in a democratic election.
• D)the marginal cost of reducing it is zero.

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Definitions:

Nativist Theory

The hypothesis that some talents or capabilities are innate or embedded in the brain from birth.

Empiricist Theory

A philosophical perspective emphasizing that knowledge comes primarily from sensory experience and observation rather than inherent ideas.

Observer-Expectancy Effect

refers to a cognitive bias wherein a researcher's expectations influence the participants of an experiment, potentially affecting the outcome.

Mental Age

A measure of an individual's cognitive ability compared to the average cognitive ability of an individual of a specific chronological age.