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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.


Definitions:

Contracted Work

Work undertaken by a person or company based on a contractual agreement with another party, typically specifying the work to be done, timeline, and payment.

Request For Proposals

A document issued by an organization inviting suppliers to submit a proposal on a specific commodity or service.

RFP

Request for Proposal, a formal document issued by an organization inviting suppliers to submit proposals for the provision of goods, services, or works.

Pay-For-Success Contracts

A funding model in which payment is contingent upon achieving agreed-upon outcomes, often used to encourage innovation and effectiveness in social services.

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