To Address the Problems Created by Negative Externalities, Economists Prefer

question 66

Multiple Choice

To address the problems created by negative externalities, economists prefer programs that:

• A) require government to conserve, using general tax revenues to pay for the program.
• B) require all people to reduce consumption equally.
• C) make people who have the lowest benefit of reducing consumption choose to undertake the most reduction.
• D) make people who have the lowest cost of reducing consumption choose to undertake the most reduction.

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Definitions:

Goldwater-Nichols Act

A significant restructuring of the United States military's chain of command, passed in 1986 to improve military effectiveness and interoperability.

Ethical Decision Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Stakeholders

Individuals or groups that have an interest or stake in the outcome of a project, decision, or endeavor.

Maximum Profit

The highest achievable profit under given market conditions, considering all costs and revenue.