Two Types of Private Solutions to the Problem of Externalities

question 28

Multiple Choice

Two types of private solutions to the problem of externalities are

• A)charities and the Golden Rule.
• B)charities and subsidies.
• C)the Golden Rule and taxes.
• D)taxes and subsidies.

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Definitions:

Classically Conditioned Responses

Behaviors that are learned through the process of associating an initially neutral stimulus with a stimulus that naturally evokes a response.

Nondeclarative Memory

A type of long-term memory that stores knowledge of procedures and how things are done, rather than explicit facts or events.

Bicycle

A human-powered, pedal-driven vehicle with two wheels attached to a frame, one behind the other.

Pedaling

A physical activity involving the use of legs to move pedals in a circular motion, commonly associated with bicycling or exercising on stationary bikes.