Government can correct for negative externalities by
A) decreasing taxes.
B) increasing taxes or regulation.
C) allowing the market system to correct the problem.
D) decreasing the costs to those responsible for the externality.

Question

Quizplus · Accepted Answer

Increasing taxes or regulation can discourage activities that create negative externalities and provide incentives to find alternative approaches or technologies to reduce the negative effects.

Government Can Correct for Negative Externalities by