Multiple Choice
Government intervention will not be necessary when voluntary contracting internalizes an externality. Which of the following is NOT a necessary condition for this to occur?
A) well-defined private property rights
B) low transaction costs
C) large numbers of individuals involved in the transactions
D) low contract enforcement costs
Correct Answer:

Verified
Correct Answer:
Verified
Q225: There is "too much" steel production if
Q226: Externalities exist because<br>A) private costs differ from
Q227: Explain why the buffalo almost became extinct
Q228: If the external costs of production are
Q229: The marginal benefit from pollution abatement<br>A) increases
Q231: Where pollution is concerned, if an automobile
Q232: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above
Q233: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5018/.jpg" alt=" -In the above
Q234: From an economic standpoint, the amount of
Q235: Many ecologists argue that several species of