A Liability Rule

question 31

Multiple Choice

A liability rule

• A) Involves the use of taxes or fees to remedy negative externalities
• B) Involves the use of subsidies to remedy negative externalities
• C) Is a legal principle requiring a party who takes an action that harms others to compensate the affected parties for some or all of their losses
• D) Requires that victims of an externality pay a tax to the producers of the externality

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Definitions:

Variable Interval Schedules

Are interval schedules in which the amount of time that must pass before a reward is given can change from one reward period to another.

Fixed Ratio Schedules

Are ratio schedules in which the number of times a behavior must occur before it is rewarded remains constant over time.

Reinforcement Theory

A motivational theory suggesting that behavior is driven by its consequences, with rewards increasing the likelihood of repeating behaviors.

Intrinsic Motivation

The internal drive to perform an activity for its own sake and for the satisfaction it provides, rather than for some external reward.