The Economic Explanation That Is Given by Nobel Laureate Economist

question 29

Multiple Choice

The economic explanation that is given by Nobel laureate economist Ronald Coase for why community property is polluted more often that private property is that

• A)damaging community property indirectly affects individuals' wealth whereas damaging private property directly affects their wealth.
• B)damaging private property indirectly affects individuals' wealth whereas damaging community property directly affects their wealth.
• C)people are not made aware of their actions toward community property.
• D)people ignore what is not right in front of them.

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Definitions:

Anomie

A state or condition of society or an individual marked by a breakdown of social norms and values, often leading to social instability.

Egoism

An ethical theory that treats self-interest as the foundation of morality.

Dysfunction

A disruption or malfunctioning in the normal operation or function of a system, organization, or part of the body.

White-Collar Crime

Financially motivated, nonviolent crime committed by business and government professionals.