Which of the following would be an example of a nongovernmental solution to a problem associated with externalities?
A)society's preference to drive large cars and SUVs
B)a tax credit for the purchase of a hybrid auto
C)a moral code against using sprinklers during a drought
D)tax credits for the purchase of hybrid autos

Question

Quizplus · Accepted Answer

A moral code is an example of a nongovernmental solution to a problem associated with externalities because it is not enforced by the government, but rather is a social norm or expectation. The other options all involve some form of government intervention or policy.

Which of the Following Would Be an Example of a Nongovernmental