If people took external costs, such as pollution, into consideration when deciding how much to consume of goods that cause externalities, they would:
A)consume a socially non-optimal amount.
B)not change their consumption behavior.
C)consume more.
D)consume less.

Question

Quizplus · Accepted Answer

When people consider external costs, such as pollution, they are likely to reduce their consumption of goods that cause negative externalities to align more closely with a socially optimal level of consumption.

If People Took External Costs, Such as Pollution, into Consideration