If Only a Few People Are Affected by an Externality

question 15

Multiple Choice

If only a few people are affected by an externality, then it is likely that:

• A)Pigovian taxes will provide the most efficient solution to the externality
• B)command-and-control regulation will provide the most efficient solution to the externality
• C)a private solution to the inefficiency will occur
• D)a private solution will be very difficult to negotiate

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Definitions:

Supporting Evidence

Information or data that corroborates, confirms, or strengthens a claim, theory, or argument, providing a solid base for conclusions.

Oral Presentation

A spoken presentation or speech delivered to an audience for the purpose of sharing information, persuading, or instructing.

Guided Discussion

A structured conversation led by a facilitator aimed at exploring topics in depth by directing the conversation through questions and prompts.

Chief Robotics Engineer

A senior role responsible for overseeing the design, development, and maintenance of robotic systems or products, often involving managerial responsibilities and strategic planning.