When Producers Are Hard to Monitor and Property Rights Are

question 57

Multiple Choice

When producers are hard to monitor and property rights are too costly,________ is (are) an effective method to achieve efficient use of a(n) ________.

• A) individual transfer quotas; public good
• B) making a government payment equal to the marginal private benefits; public good
• C) individual transferable quotas; common resource
• D) individual transferable quotas; excludable good
• E) making a government payment equal to the marginal private costs; common resource

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Definitions:

Opportunity Cost

Opportunity cost represents the value of the best alternative forgone when a decision is made to choose one option over another.

Parking Permit

A document or label allowing a vehicle to be parked in a designated area or facility.

Opportunity Cost

The expense associated with not choosing the second-best option when a decision or choice is made.

College Degree

An academic degree awarded by colleges and universities upon completion of a course of study demonstrating mastery or a high-order overview of a specific field of study or area of professional practice.