Economics (AS & A Level) · May / June 2026 · Paper 32 · Question 10
9708Government policies to achieve efficient resource allocation and correct market failure
What is an advantage of a 'creation of property rights' solution to externalities resulting from 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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Correct answer: A. It allows the possibility of a claim for compensation to those harmed.
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