Which of These Actions Is MOST Likely to Internalize a Positive

question 205

Multiple Choice

Which of these actions is MOST likely to internalize a positive externality?

• A) adding new restrictions on when one can water the lawn
• B) reducing the amount of college scholarships available to lower income students
• C) reducing the fees companies must pay for carbon emissions
• D) providing an in-store discount card after getting a flu shot

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Definitions:

Social Security

A government program designed to provide financial assistance to individuals during retirement, disability, or other situations leading to a loss of income.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure a debt or obligation, giving the lender rights to the property if the borrower defaults.

Secured Creditor

A creditor who has the benefit of a security interest in an asset of the debtor, giving them a right to take possession of the secured property if the debtor fails to repay the debt.

Lender

An entity or individual that provides funds to another under the agreement that the funds will be repaid, typically with interest.