Which of the following is the government most likely to discourage because of the existence of externalities?

Question

Quizplus · Accepted Answer

Cars that create an excessive amount of exhaust fumes create negative externalities in the form of pollution and harm to the environment and public health. The government is likely to discourage the production and use of such cars through regulations and taxes. The other choices do not necessarily involve externalities or have positive externalities that may not be discouraged by the government.

Which of the Following Is the Government Most Likely to Discourage