Which of the Following Is a True Statement

question 84

Multiple Choice

Which of the following is a true statement?

• A) Any property right system will yield a situation in which all externalities are internalized.
• B) Voluntary agreements can always yield a situation in which all externalities are internalized.
• C) Opportunity costs always exist with whoever has property rights.
• D) Opportunity costs turn external costs into social costs.

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Definitions:

Expectancy Model

A psychological theory proposing that an individual's motivation is related to their expectation of achieving a desired outcome and the value they place on that outcome.

Motivated

The inner drive or psychological force that compels an individual towards a specific goal or action.

Equity Theory

A theory in social psychology that explains how individuals assess their own input-to-outcome ratios in comparison to others', in terms of fairness.

Outcome

The result or effect of an action, situation, or event.