If the Social Costs of Driving an Automobile Are Greater

question 212

Multiple Choice

If the social costs of driving an automobile are greater than the private costs of driving an automobile, then

• A) the external costs of auto driving exceed the social costs of auto driving.
• B) the external costs of auto driving exceed the internal costs.
• C) the price of automobile driving is too high.
• D) either people drive their autos too much or more funds should be spent on reducing air pollution.

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Definitions:

Written Contract

A formal agreement between two or more parties that is fully documented and signed, outlining specific obligations and terms.

Indemnity

A contractual obligation by one party to compensate the loss incurred by the other party due to the acts of the indemnitor or other specified individuals.

Parol Evidence Rule

A legal principle stating that oral evidence cannot be used to contradict, modify, or add to the terms of a written contract.

Verbal Agreement

An arrangement or contract that is made through spoken word rather than written documentation, but can still be legally binding.