All of the following would be government solutions to externality problems EXCEPT:
A) public sector charities.
B) taxes and subsidies.
C) command and control.
D) tradable allowances.

Question

Quizplus · Accepted Answer

Public sector charities are not a government solution to externality problems. Charities may be supported by government, but they are not a policy instrument used to address externalities. The other options - taxes and subsidies, command and control, and tradable allowances - are all policy instruments used by government to address externalities.

All of the Following Would Be Government Solutions to Externality