An Example of a Private Solution to Externalities Is Charities

question 18

Short Answer

An example of a private solution to externalities is charities. The government encourages this private solution by allowing ___________ .

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Definitions:

Remuneration Levels

Different scales or amounts of payment or compensation provided to employees or executives, often determined by their position, performance, or qualifications.

Employer Contributions

Payments made by an employer into a benefit plan (such as pensions or health insurance) on behalf of their employees.

Enterprise Bargaining Agreement

A collective industrial agreement between employers and employees on terms and conditions of employment, typically negotiated at the enterprise level.

Relevant Employee Union

A labor organization that represents the interests of workers within a specific industry or company.