In 2011, a Tsunami Along the Japanese Coast Damaged Nuclear

question 50

Multiple Choice

In 2011, a tsunami along the Japanese coast damaged nuclear power plants that leaked dangerous radiation into the surrounding population. If this leakage could have been prevented, given a disaster of this level, which answer would be a Coasian solution to this externality?

• A) the government fining the firm which owns the power plants
• B) the injured demanding compensation through a class-action law suit
• C) a ban on all future Japanese nuclear power plants and the shutdown of existing ones in Japan
• D) None of these would be a Coasian solution.

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Definitions:

Faulty Heuristics

Incorrect or misleading cognitive shortcuts that are used to make decisions or solve problems.

Neurons

Specialized cells within the nervous system that transmit information through electrical and chemical signals.

Visual Information

Data or knowledge that can be received and processed visually, often via illustrations, graphs, images, or video.

Overconfidence Effect

A mental distortion in which a person's belief in their own decision-making abilities exceeds the actual precision of those decisions.