Which of the Following Is Not an Effective Method of Reducing

question 57

Multiple Choice

Which of the following is not an effective method of reducing negative externalities?

• A)relying on voluntary compliance
• B)taxing the output of industries that pollute
• C)creating legal environmental standards
• D)increasing public spending on cleanup and reduction of pollution

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Definitions:

Inflation

The general rise in prices in an economy.

Investment Opportunity

A situation or scenario that offers the potential for investment gains, either through income generation or asset appreciation.

Gross Domestic Product

The total monetary value of all goods and services produced within a country's borders in a specific time period.

International Companies

Businesses that operate across multiple countries, engaging in global trade, production, or services, and often influencing economic patterns worldwide.