To Internalise a Negative Externality, an Appropriate Public Policy Response

question 3

Multiple Choice

To internalise a negative externality, an appropriate public policy response would be to

• A) have the government take over the production of the good causing the externality.
• B) ban the production of all goods creating negative externalities.
• C) tax the good.
• D) subsidise the good.

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Definitions:

Transformational Leadership

A leadership approach that encourages and stimulates followers to surpass their personal interests for the benefit of the group or organization.

Transactional Leadership

A style of leadership that focuses on supervision, organization, and performance; leaders promote compliance through rewards and punishments.

Charismatic Leadership

A leadership style characterized by an individual's ability to inspire and motivate followers through their personal charm and persuasion.

Idealized Influence

A component of transformational leadership where leaders act as role models and earn respect and trust, inspiring followers through their behavior and beliefs.