Economics 9708 · AS & A Level · 7.4

7.4 — practice question

What advantage does a ‘creation of property rights’ solution offer for externalities caused by river pollution?

  • AIt allows the possibility of a claim for compensation to those harmed.
  • BIt always makes the polluter pay for pollution caused.
  • CIt results in better monitoring by the government of the damage from pollution.
  • DIt will eliminate pollution completely.

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