The Text Discusses Private Solutions for Resolving Externalities Using the Honey

question 74

Multiple Choice

The text discusses private solutions for resolving externalities using the honey market. Among the reasons why the market solution works well in the honey market is the fact that:

• A) bees don't fly far, and thus it is easy to identify which farmers are getting the benefits of their pollination activities.
• B) the owners of the beehives can clearly be identified.
• C) the market limits the beneficial activities of the bees to those farmers who have very small farms.
• D) All of the answers are correct.

---

Definitions:

Illusion Transparency

The tendency to overestimate the extent to which our personal mental state is known by others.

Honest

Characterized by truthfulness, integrity, and straightforwardness in actions and statements.

Different Parts

This refers to the various components or sections that make up a whole; in a system or machine, it refers to the distinct elements that perform specific functions.

Self-Determination Theory

The idea that people function best when they feel that their actions stem from their own desires rather than from external forces.