Which of the following is a true statement?

Question

Quizplus · Accepted Answer

Opportunity costs always exist with whoever has property rights, as the decision to use a resource in a certain way always involves giving up the opportunity to use it in an alternative way. This implies that there are costs associated with any property rights system, even if all externalities are internalized. Choices A and B are not true, as property right systems and voluntary agreements do not necessarily internalize all externalities. Choice D is incorrect because opportunity costs do not turn external costs into social costs, but rather reflect the cost of foregone opportunities.

Which of the Following Is a True Statement