Which of the Following Is a True Statement

question 151

Multiple Choice

Which of the following is a true statement?

• A) Externalities cannot be solved by market solutions and always require government action.
• B) Externalities would never be a problem if people were willing to comply with government regulations.
• C) Voluntary agreements can solve externality situations by making the party incurring the costs bear the costs of his or her actions.
• D) Externalities can only be handled by government regulation and emission taxes cannot work effectively.

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Definitions:

Cue

A signal or prompt that triggers an action or a response.

Learned Behavior

Behaviors that an individual acquires through conditioning or observation in their environment.

Piagetian

Relates to the theories and works of Swiss psychologist Jean Piaget, who studied the cognitive development of children.

Psychometric

Referring to the measurement of mental functions, abilities, and processes.