When the People Creating an Externality Are Made to Pay

question 75

True/False

When the people creating an externality are made to pay for the externality by the government,the externality is said to be internalized.

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Definitions:

Clinical Trial

A research study that tests how well new medical approaches work in people.

Usual Circumstances

The typical or normal conditions or situations in which something is done or occurs.

Cost-benefit Ratio

An analysis that compares the costs and benefits of an intervention or action, typically expressed as a ratio or a net value.

Beneficial Result

A positive, advantageous, or desirable outcome that arises from a particular action or set of circumstances.