Markets Are Always Able to Find Solutions to Externality Problems

question 65

True/False

Markets are always able to find solutions to externality problems and thus maximize social surplus.

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Definitions:

Strict Liability Clause

A legal principle that holds an individual or entity responsible for their actions or products, regardless of negligence or intent.

Limited Liability Clause

A provision in a contract that limits the amount of money one party can be responsible for in case of breach of the contract.

Res Ipsa Loquitur

A legal doctrine stating that the occurrence of an accident implies negligence, as the event would not normally happen without it.

You May Have the Body

A common English translation of "Habeas Corpus," a legal action or writ by means of which detainees can seek relief from unlawful imprisonment.