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.