Beginning from a Situation Where There Were No Clear Property

question 116

Multiple Choice

Beginning from a situation where there were no clear property rights to clean air and water:

• A)​subsidies could not improve efficiency in cases of external benefits.
• B)​subsidies could not improve efficiency in cases of external costs.
• C)​taxes could not improve efficiency in cases of external costs.
• D)​neither external benefits nor external costs could improve efficiency in either the case of external benefits or the case of external costs.

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Definitions:

Assumptions

Premises or beliefs taken for granted as the basis for argument or action, often without proof.

New Ideas

Concepts, thoughts, or insights that have not been previously known or recognized, often leading to innovation or different approaches in various fields.

Business Plans

Detailed documents that outline the operational and financial objectives of a business, including strategy, market research, and financial forecasts.

Back-Of-The-Napkin

An informal approach to problem-solving or idea generation, utilizing simple sketches or calculations made quickly, often on a napkin or similar surface.