Transaction costs
a. can keep private parties from solving externality problems.
b. are incurred in the production process due to externalities.
c. increase when taxes are imposed to correct negative externalities.
d. are eliminated when the government intervenes in a market with externalities.
a
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The lawmaking time lag is best described as the time that it takes
A) Congress to realize that new laws must be passed to change taxes or spending. B) a newly passed law to become the norm in daily lives. C) the President to sign a bill sent from Congress. D) a jury to render a verdict. E) Congress to pass laws needed to change taxes or spending.
From the perspective of economic theory, property rights are
A) human rights. B) just as important as human rights. C) less important than human rights. D) more important than human rights. E) usually in conflict with human rights.