Since trash generation involves an externality,economists would answer the problem of trash generation by
A) raising the private cost to include external costs.
B) having the government require mandatory sorting and recycling of trash.
C) having the cost of the externality be paid to the government.
D) not allowing people to throw away more trash than acceptable as a maximum.
E) lowering the private cost to include external costs.

Question

Quizplus · Accepted Answer

Economists would suggest raising the private cost of trash generation to include external costs, such as pollution and environmental damage, through measures like taxes or fees. This would create an incentive for individuals and businesses to reduce their trash generation and encourage them to consider more sustainable waste management practices. Simply requiring mandatory recycling or limiting the amount of trash allowed would not fully address the externality issue and may create unintended consequences.

Since Trash Generation Involves an Externality,economists Would Answer the Problem