To address the problems created by negative externalities, economists prefer programs that:
A) require government to conserve, using general tax revenues to pay for the program.
B) require all people to reduce consumption equally.
C) make people who have the lowest benefit of reducing consumption choose to undertake the most reduction.
D) make people who have the lowest cost of reducing consumption choose to undertake the most reduction.

Question

Quizplus · Accepted Answer

Economists prefer programs that internalize the externality by making those who can reduce consumption at the lowest cost do so, as this is the most efficient way to address negative externalities.

To Address the Problems Created by Negative Externalities, Economists Prefer