All Remedies for Externalities Share the Goal of

question 495

Multiple Choice

All remedies for externalities share the goal of

• A)moving the allocation of resources toward the market equilibrium.
• B)moving the allocation of resources toward the socially optimal equilibrium.
• C)increasing the allocation of resources.
• D)decreasing the allocation of resources.

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Definitions:

Motorists

Individuals who operate cars or other motor vehicles.

Speed Limit

The maximum legal speed at which vehicles may travel on a particular road or in a specific area.

Gas Mileage

A measure of how many miles a vehicle can travel on a gallon of gasoline, often used as an indicator of fuel efficiency.

Traffic Accidents

Unforeseen incidents that occur on the road involving vehicles, pedestrians, or cyclists, often resulting in injury or damage.