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:

Lateral Flexion

The bending of the neck or body toward the right or left side.

Posterior Neck Muscles

The group of muscles located at the back of the neck, including the trapezius and the splenius muscles, responsible for movements of the head and shoulders.

Abduction

Movement away from the midline.

Adduction

The movement of a body part toward the body's midline.