Multiple Choice
Each year, around Christmas, you decorate your home so elaborately that news crews come to film stories about your Christmas spirit. As a result, hundreds of people from all over the city drive by your house to see the "Christmas" home, creating noise and congestion that is a nuisance to your neighbors. As they have a right to not be bothered, you agree to pay your neighbors a modest sum to compensate them for the disturbance. This illustrates:
A) the Coase theorem.
B) a corrective tax.
C) a corrective subsidy.
D) the expendable argument theorem.
Correct Answer:
Verified
Correct Answer:
Verified
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