Economists are most likely to suggest that societies address the inefficiencies created by negative externalities by:
A) direct regulation.
B) voluntary conservation.
C) making the price people pay reflect the cost of the externality.
D) leaving environmental problems alone so that the market can deal effectively with them.

Question

Quizplus · Accepted Answer

Economists often recommend internalizing negative externalities by making the price reflect the true cost, which can be achieved through taxes or fees that incorporate the external costs into the market price.

Economists Are Most Likely to Suggest That Societies Address the Inefficiencies