Which of the Following Is a Way to Address an Externality

question 332

Multiple Choice

Which of the following is a way to address an externality problem?

• A)command and control solution
• B)corrective tax
• C)corrective subsidy
• D)all of the above.

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Definitions:

Absolute Advantage

A concept in international trade theory that occurs when a country can produce a good more efficiently and at a lower cost than another country.