Private solutions to externalities are most effective if ...

[Garrulous]

Private solutions to externalities are most effective if ________.
 
  A) transaction costs associated with bargaining are low
  B) transaction costs associated with bargaining are high
  C) property rights are not defined clearly
  D) a large number of people are affected by the externalities

Question 2

Large and long-continued increases in the demand for electricity will tend to result in
 
  A) a higher cost of generating electricity.
  B) a higher price for electricity but no increase in the cost of generating it.
  C) a reduction in the quantity of electricity demanded as a consequence of higher prices.
  D) an increase in the quantity of electricity demanded and hence a decrease in its price.

[swimkari]

Answer to Question 1

A

Answer to Question 2

A

[Garrulous]

Correct answers!

[swimkari]

Great! Please up vote