Government Solutions to Externality Problems Include

question 208

Multiple Choice

Government solutions to externality problems include:

• A) taxing the consumption of goods that cause externalities.
• B) subsidies.
• C) allowing firms to trade the rights to create pollutants.
• D) All of the answers are correct.

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Definitions:

John Locke

a 17th-century English philosopher and political theorist known for his contributions to liberalism, social contract theory, and the concept of personal identity.

Thomas Hobbes

A 17th-century English philosopher known for his work on political philosophy, particularly his book "Leviathan," positing the foundation of societies and governments.

Natural State

A condition or situation perceived as inherent and untouched by human influence, often referring to environments or human behavior.

Thomas Hobbes

A 17th-century English philosopher known for his work on political philosophy, especially as articulated in his book "Leviathan," where he discusses the structure of society and legitimate government.