Government Often Finds It Difficult to Cope with Externalities Because

question 66

Multiple Choice

Government often finds it difficult to cope with externalities because

• A)costs and benefits are difficult to assess in monetary terms.
• B)taxes and subsidies are ineffective in equating MSC and MSB.
• C)government has no authority to impose fines for air and water pollution.
• D)marginal private cost curves cannot be shifted.

---

Definitions:

Initiating Discussion

The act of starting a conversation or dialogue, often aimed at exploring or resolving issues.

Sharing Information

The process by which data, knowledge, and insights are exchanged among individuals, teams, or organizations.

Social Psychology

The scientific study of how individuals think, influence, and relate to one another within a social context.

High Performance

Achieving significantly better outcomes or efficiency levels than standard benchmarks or expectations.