When the People Creating an Externality Are Made to Pay

question 75

True/False

When the people creating an externality are made to pay for the externality by the government,the externality is said to be internalized.

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Definitions:

Health Club

A facility that offers health and fitness services, including exercise equipment, fitness classes, and sometimes additional amenities like pools and spas.

Manufacturing Business

A company that produces goods using labor, equipment, and materials, often on a large scale.

Dressmaking Company

A business specializing in creating custom clothing and alterations.

Service Business

A business that provides intangible products or services to customers, rather than physical goods.