Externalities Are Best Solved By

question 24

Multiple Choice

Externalities are best solved by:

• A) command economies
• B) market economies
• C) low income economies
• D) not enough information to answer

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Definitions:

International Body

An organization composed of members from multiple countries created to address global issues and facilitate cooperation across borders.

GATT

General Agreement on Tariffs and Trade, an international treaty designed to reduce trade barriers and promote international commerce.

Unilateral Approach

A policy or action undertaken by a single government or organization independently, rather than by agreement with others.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no barriers such as tariffs, quotas, or legislation.