Externalities May Be Internalized by

question 246

Multiple Choice

Externalities may be internalized by

• A)government-imposed taxes and subsidies.
• B)regulation.
• C)legal rules and procedures.
• D)bargaining and negotiation.
• E)All of the choices are correct.

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Definitions:

Personal Assets

Items of value owned by an individual, including cash, investments, real estate, and personal belongings.

Limited Partnerships

A business structure where at least one partner has limited liability to the extent of their investment while at least one other has unlimited liability.

General Partner

An owner of a partnership who has unlimited liability and is involved in the day-to-day management of the business.

Law

A system of rules created and enforced through social or governmental institutions to regulate behavior.