Which of the Following Is a Way to Address an Externality

question 332

Multiple Choice

Which of the following is a way to address an externality problem?

• A)command and control solution
• B)corrective tax
• C)corrective subsidy
• D)all of the above.

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Definitions:

Undue Influence

A situation where an individual is able to persuade another's decisions due to the relationship between the two parties, often leading to unfair advantage.

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against the person, raising questions about the voluntariness of the act.

Scienter

In legal contexts, scienter is the knowledge or intent to deceive, defraud, or violate statutes or regulations.

Representations

Statements or assertions made by one party to another, often regarding the condition or status of something, which can impact agreements or contracts.