Altering Incentives So That People Take Account of the External

question 282

Multiple Choice

Altering incentives so that people take account of the external effects of their actions

• A)is called internalizing the externality.
• B)can be done by imposing a corrective tax.
• C)is the role of government in markets with externalities.
• D)All of the above are correct.

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Definitions:

Autonomy

The right or condition of self-government, or in personal context, the capacity to make an informed, uncoerced decision.

Ostracism

Deliberate social exclusion of individuals or groups.

Autonomy

The state or condition of having independence or freedom, or the right to self-govern.

Affiliation

The connection or association between individuals or organizations, often formed for mutual benefit or to achieve a common goal.