According to the textbook, when a foreign government provides aid to a poor nation, it
A) interferes in the domestic affairs of the poor nation.
B) behaves in the interest of the poor nation.
C) pursues the global interest.
D) does all of the above.
E) does none of the above.
Question 2
What important function does adjudication perform in the process of reducing negative externalities?
A) It allocates the revenue from negative externalities to the people who have been damaged.
B) It arbitrates between beneficiaries of negative externalities and the people who must bear their costs.
C) It decides whether punitive or merely compensatory damages will be awarded.
D) It discovers who has which rights.
E) It imposes criminal penalties on the people responsible for generating negative externalities.
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