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What Is Meant by the Term "Internalizing an Externality"? How

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Essay

What is meant by the term "internalizing an externality"? How does a Pigovian tax or subsidy internalize an externality?


Definitions:

Alleviating Factors

Elements or conditions that can reduce the severity or intensity of a symptom or problem.

Aggravating Factors

Conditions or aspects of a case that can increase the severity or culpability of a criminal act, leading to harsher sentences.

Associated Symptoms

Signs or manifestations related to a particular disease or condition, often helping in the diagnosis or assessment of the disease.

Triage

The process of determining the priority of patients' treatments based on the severity of their condition, used in emergency and medical settings.

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