The Creation of Private Property Rights Corrects Negative Externality Problems

Multiple Choice

The creation of private property rights corrects negative externality problems in many cases because they

A) cannot create negative externalities
B) create a strong incentive for the private owners to maintain the property
C) can force the government to compensate the owners for the externality costs
D) encourage people to become free riders
E) always lead to the social optimal price and output levels