Compare Two Situations

question 20

Multiple Choice

Compare two situations.(A) A firm is not legally responsible for damages that result from air pollution caused by its production of steel.(B) A firm is legally responsible for damages that result from its production of steel.Ronald Coase argued that if the property rights are assigned and transactions costs are low,

• A)bargaining between the firm and the victims of the air pollution caused by the firm will result in little reduction of pollution in either situation (A)or (B)because the firm has greater economic and political power than the victims.
• B)bargaining between the firm and the victims of the air pollution caused by the firm would lead to a greater reduction in pollution in situation (A)than situation (B).
• C)bargaining between the firm and the victims of the air pollution caused by the firm would lead to a smaller reduction in pollution in situation (A)than situation (B).
• D)bargaining between the firm and the victims of the air pollution caused by the firm would lead to an equal reduction in pollution in situation (A)and situation (B).

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Definitions:

Circadian Rhythm

An internal rhythm that approximates the 24-hour day. See biological clocks.

Cryptochrome

A proteinaceous pigment that strongly absorbs blue light; implicated in resetting the biological clock in plants, fruit flies, and mice.

Rubisco

An enzyme that catalyzes the fixation of atmospheric carbon dioxide during photosynthesis in plants.

Transcription

The process by which the genetic information in a strand of DNA is copied into a new molecule of messenger RNA (mRNA), which then leads to protein synthesis.