Asked by Jamie Flexer on Jul 21, 2024
Verified
________ protect property rights.
A) Taxes and subsidies
B) Bargaining and negotiation
C) Injunctions and liability rules
D) Rivalry and excludability
Injunctions
Legal orders issued by a court requiring a person or entity to do or cease doing a specific action.
Liability Rules
A set of legal principles governing who is financially responsible for the harm or damages caused by one party to another.
Property Rights
The legal rights to possess, use, and dispose of assets, including real estate, intellectual property, and personal possessions.
- Analyze how property rights, legal norms (like injunctions and liability guidelines), and collective bargaining strategies influence the resolution of externalities.
Verified Answer
YC
Yasir ChandiaJul 27, 2024
Final Answer :
C
Explanation :
Injunctions and liability rules are legal mechanisms used to protect property rights. Injunctions can prevent or require actions by parties to protect someone's property rights, while liability rules impose costs or damages on those who infringe upon others' property rights.
Learning Objectives
- Analyze how property rights, legal norms (like injunctions and liability guidelines), and collective bargaining strategies influence the resolution of externalities.