When no one owns a particular resource
A) property rights are clearly defined.
B) individuals have legal recourse for any damages caused to their resource.
C) no one has any incentive to consider externality spillovers associated with that resource.
D) positive externalities will arise.
C
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In the current Post-Industrial economy, international trade in services (including banking and financial services)
A) dominates world trade. B) does not exist. C) is an increasingly important component of global trade. D) is relatively stagnant. E) far surpasses the predictions of economist Alan Blinder.
Suppose I have $1,000 to put into a one-year CD. Community Bank offers 5 percent interest, Floatbank offers 5.25 percent, and Squidbank offers 5.40 percent. If I place my money in Squidbank, my economic profit on the investment is
a. 5.40 percent b. 5 percent c. 0.40 percent d. 0.15 percent e. -0.40 percent