The warming Arctic affects us all Arctic temperatures are rising twice as fast a
ID: 1162251 • Letter: T
Question
The warming Arctic affects us all Arctic temperatures are rising twice as fast as the global average and receding sea icen threatens poiar bears, waiuses, and seals that exist nowhere ebe on ewth and face an inoreased risk of estinctor. Souroe: Trthout, Deoember 4, 2015 What is the extemality desarbed in the news cip? How could property rights influence the amount of damage done to the Artic Sea and is wildie? The extemality described in the news clp O A the lack of human conscienoe to save Arctic animals O B. that Actic temperatures are rising twice as fast as the giobal average O C. the decisions of the worlds producers to maximize proft by seting marginal private benafit equsl to marginal prvate os Property righ O A ngardoss of the owner, creale the officient quantity of polution externality in the Avtic acconding to te Coase therem O 8. when combined with a subsidy can decrease the amount of damage done to the Arotic Sea and its wdide O C are the best way to influence damage in the Araio becauso most fiems that contribute to the externality would ignore an emission fee or tax D play a limted nole in addressing this externality because thore are billions of owners of the sources of carton enissions, and the transacions oasts ae too argeExplanation / Answer
First question is answered below-
- D is correct
Externality is the negative effect of a private activity on society.
The news clip decribes about the effect of carbon emissions by private institutions on animals who are dying becuase of the negative externality.
- A is correct
According to coase theorem, property rights is a way of ensuring social efficiency. It does not depend if the property rights are given to the creator of the externality or bearer, efficient equilibrium will always result.
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