A negative externality can be internalized
A)by persuasion, the imposition of a tax, the assignment of property rights, or a voluntary agreement.
B)only by the imposition of a tax.
C)only by persuasion or the assignment of property rights.
D)only by a voluntary agreement.

Question

Quizplus · Accepted Answer

A negative externality can be internalized through multiple methods, including persuasion, the imposition of a tax, the assignment of property rights, or a voluntary agreement. Each method may be more effective in certain circumstances, but all have the potential to internalize the negative externality and lead to a more efficient allocation of resources. Therefore, option A is the best choice.

A Negative Externality Can Be Internalized