When Negotiation Is Costly,it Makes a Difference Where Liability Is

question 44

True/False

When negotiation is costly,it makes a difference where liability is placed in terms of reaching an efficient solution to a negative externality problem.

---

Definitions:

General Fund

The general fund is the primary operating fund of a government, supporting general activities and services such as public safety, parks, and general administration.

Agency Fund

A fiduciary account used by governmental entities to manage funds collected on behalf of others, such as taxes or grants.

Enterprise Fund

A fund used by a government to account for operations financed by user charges for services provided by the government.

Internal Service Fund

A fund used within governmental accounting to manage the costs and financing of services provided by one department to other departments on a cost-reimbursement basis.