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Nancy Loves to Landscape Her Yard, but Her Neighbour Tom

Question 125

Multiple Choice

Nancy loves to landscape her yard, but her neighbour Tom places a low value on his landscaping. When Tom's grass is neglected and gets long, Nancy will mow it for Tom. This is an example of:


A) a situation in which the Coase theorem fails to explain the law mowing arrangement
B) improper allocation of resources
C) a private solution to a negative externality problem
D) an exploitation of a common resource

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