Which of the Following Is the Most Appropriate Response of Public

question 71

Multiple Choice

Which of the following is the most appropriate response of public policy to a negative externality like pollution?

• A) modernize, update, and restore homes in run down neighborhoods to decrease littering
• B) find ways to account for the social costs of the negative externality in economic decisions
• C) encourage high standards of public education to increase innovation capability of youth
• D) assist the private party creating the negative externality to receive more social benefits

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Definitions:

Economical

Pertains to the efficient use or management of resources to avoid waste and reduce expenses.

Alternative Energy

Sources of energy that are considered environmentally friendly and sustainable, alternative to conventional fossil fuels, such as solar, wind, and hydroelectric power.

Elasticity of Demand

Investigating the degree to which demand for a good is affected by its price dynamics.

Energy Source

A point or substance from which energy can be obtained to provide heat, light, power, or other forms of energy.