Which of the Following Is a Solution to Externalities

question 100

Multiple Choice

Which of the following is a solution to externalities?

• A) The city government imposes rent control. The externality is that housing's quantity demanded exceeds the quantity supplied at the current price.
• B) The federal government imposes a minimum wage. The externality is that firms pay too little to their workers.
• C) The government offers free childhood immunizations. The externality is that an immunized child cannot transmit disease to others.
• D) The federal government provides national defense. The externality is that people can't be excluded from national defense even if they don't pay for it.

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Definitions:

Motivation

Factors of differing strength that energize, direct, and sustain behavior.

Stealing

The act of taking something that doesn't belong to you without permission or legal right and with no intention to return it.

Primary Sex Characteristics

The physical attributes directly involved in reproduction, such as the ovaries in females and the testes in males.

Hormonally Driven

Behaviors or physiological processes that are significantly influenced or regulated by hormones.