Since Trash Generation Involves an Externality, the Way Economists Might

question 132

Multiple Choice

Since trash generation involves an externality, the way economists might address the problem of trash generation that is most likely to be optimal is by:

• A) integrating the cost of the externality into the initial price of the good.
• B) having the government require mandatory sorting and recycling of trash.
• C) having the cost of the externality be paid by the government.
• D) not allowing persons to throw away more trash than is acceptable as a maximum.

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