What Is Meant by the Term 'Internalising an Externality'? How

question 25

Essay

What is meant by the term 'internalising an externality'? How does a Pigovian tax or subsidy internalise an externality?

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Definitions:

Job's Salary

The amount of money or compensation that an employee receives from an employer in exchange for their labor, typically expressed as an annual figure or hourly wage.

Benefits

The advantages or positive outcomes that result from an action, policy, or product.

Message Of Inquiry

A specific type of communication aimed at requesting information or clarification from a person or organization.

Interview

A formal meeting in which one or more persons question, consult, or evaluate another person, typically for the purpose of obtaining information or assessing qualifications.