If Only a Few People Are Affected by an Externality

question 493

Multiple Choice

If only a few people are affected by an externality, then it is likely that

• A)the government will play a role in collective action.
• B)command-and-control regulation will provide the most efficient solution to the externality.
• C)a private solution to the inefficiency will occur.
• D)a private solution will be very difficult to negotiate.

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Definitions:

Hwangnam-Dong Crown

An exquisite gold crown from the Silla Kingdom, discovered in the Hwangnam-daechong tomb in Gyeongju, South Korea, symbolizing the authority and status of royalty.

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Forces or entities beyond scientific understanding or the laws of nature, often attributed to deities, spirits, magic, or other otherworldly phenomena.

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A Chinese emperor of the Song dynasty, known for his patronage of the arts and his failures in foreign policy and military endeavors.

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The process of revising and updating the content and structure of educational programs to meet new objectives, standards, or pedagogical philosophies.