To Internalize a Negative Externality

question 82

Multiple Choice

To internalize a negative externality:

• A)​a producer's costs could be reduced by an amount equal to the external cost resulting from the production of a good.
• B)​a producer's costs could be increased by an amount equal to the external cost resulting from the production of a good.
• C)​a producer could receive a subsidy equal to the external cost resulting from the production of a good.
• D)​None of the above are correct.

---

Definitions:

Pre-Socratic Materialists

Early Greek philosophers who believed that the physical world is composed entirely of matter without the influence of supernatural forces.

Ultimate Reality

A concept in various philosophical and religious traditions referring to the most fundamental nature of existence, beyond which no further causal explanation can be sought.

Anaximander

An early Pre-Socratic philosopher from Miletus in Ionia, notable for his work in cosmology, geography, and biology.

Descartes

René Descartes, a 17th-century French philosopher, mathematician, and scientist, known for his statement "Cogito, ergo sum" (I think, therefore I am) and his contributions to modern philosophy and the development of rationalism.