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:

Eruption Column

A column of hot volcanic ash and gas ejected into the atmosphere during an explosive volcanic eruption.

Felsic

Describes igneous rocks that are rich in light-colored minerals such as quartz and feldspars.

Volcanic Breccia

A type of rock composed of large volcanic fragments, often formed during explosive volcanic eruptions.

Pyroclastic Flow

A fast-moving current of hot gas and volcanic materials (such as ash and lava fragments) that flows along the ground after an eruption, capable of causing destruction.