Effective Strategies for Addressing the Problem of Negative Externalities Include

question 107

Multiple Choice

Effective strategies for addressing the problem of negative externalities include

• A)taxing the profit of polluting companies at twice the rate of non-polluting companies.
• B)imposing taxes on the activity that generates the pollution.
• C)stressing the use of renewable resources.
• D)imposing recycling laws.
• E)closing down a polluting industry.

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Definitions:

Moral Minimum

The concept that businesses should at least avoid causing harm and engage in ethical behavior that meets a basic level of moral conduct.

Triple Bottom Line

The Triple Bottom Line refers to a framework that evaluates a company's performance based on three factors: social, environmental, and financial.

Corporate Social Responsibility

Business practices involving initiatives that benefit society and the environment beyond profit-seeking motives.

Officers

In the context of corporations, officers are high-ranking individuals appointed to manage the day-to-day operations and make executive decisions on behalf of the company.