An economist is most likely to support all of the following methods to address the negative externalities created by the waste from newspapers except:
A) requiring publishers to cut the volume of newspapers generated but allowing them to sell certificates so that others can meet those requirements for them.
B) taxing the suppliers of newspaper by the pound.
C) having the cost of the externality be paid by the government.
D) ensuring that the social cost of buying a newspaper is reflected in its price.

Question

Quizplus · Accepted Answer

Economists generally prefer solutions that internalize externalities, such as taxes or market-based approaches, rather than having the government bear the cost, which can lead to inefficiencies and does not incentivize reduction of the externality.

An Economist Is Most Likely to Support All of the Following