A Policy That Directly Targets the Externality

question 104

Multiple Choice

A policy that directly targets the externality:

• A) encourages innovation, which matches the goal to stop production of the externality.
• B) gives firms incentives to find different ways to do things, rather than pay for the right to create the externality.
• C) Both of the above statements is true.
• D) None of these statements are true.

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Definitions:

Hindlimbs

The rear limbs or legs of an animal, often used for propulsion in terrestrial species.

Evidence

Information or facts that are used to support a conclusion or hypothesis.

Epidemiology

The study of how diseases spread and can be controlled in populations, focusing on patterns, causes, and effects of health and disease conditions.

The World Smaller

The concept often refers to the process of globalization and technological advancements that make communication, travel, and trade easier across long distances, effectively making the world feel smaller.