Questions
Single choice
How do negative externalities affect property rights and economic efficiency?
Options
A.a. They always result in legal disputes and require state intervention.
B.b. They eliminate the need for government intervention in property-related disputes.
C.c. They increase market efficiency by redistributing wealth among all participants.
D.d. They lead to overuse of resources because costs are imposed on third parties
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Step-by-Step Analysis
Topic focus: negative externalities and property rights, and their impact on economic efficiency.
Option a: 'They always result in legal disputes and require state intervention.' While negative externalities can lead to disputes and may motivate state intervention in some cases, it is not accurate to say they always result in legal disputes or require intervention. Some negative externalities are internalized t......Login to view full explanationLog in for full answers
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