Internalizing an Externality Means

question 3

Multiple Choice

Internalizing an externality means

• A) the good becomes a public good.
• B) government regulations or taxes are sufficient to eliminate the externality completely.
• C) government imposes regulations that eliminate the externality completely.
• D) incentives are altered so that people take account of the external effects of their actions.

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Definitions:

Trained Individuals

People who have received specialized education or skills training relevant to a particular job or task.

Cost Information

Data related to the production, acquisition, or maintenance of goods and services, important for managerial decision-making.

Process Costing Systems

An accounting method used for homogeneous products, allocating production costs based on the processes or departments.

Work in Process Inventory

Goods that are in various stages of production but are not yet finished goods, representing partially completed products in the manufacturing process.