Which of the Following Is a TRUE Statement

question 119

Multiple Choice

Which of the following is a TRUE statement?

• A) Externalities cannot be solved by market solutions and always require government action.
• B) Externalities would never be a problem if people were willing to comply with government regulations.
• C) Voluntary agreements can solve externality situations by making the party incurring the costs bear the costs of his or her actions.
• D) Externalities can only be handled by government regulation and emission taxes cannot work effectively.

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Definitions:

Social Group

A collection of individuals who interact with each other and share similar characteristics or a sense of unity.

Expecting To Suffer

The anticipation of experiencing pain, hardship, or distress.

Reward System

Mechanisms or strategies used to reinforce desirable behaviors by offering positive incentives or outcomes.

Low Self-esteem

A persistent feeling of inadequacy or lack of self-worth, reflecting a negative evaluation of oneself.