Which of the following methods could be used to correct for external costs?

Question

Quizplus · Accepted Answer

All of the above methods could be used to correct for external costs. Imposing a tax or effluent fee on offenders would make them pay for the external cost they impose on society. Having the offender clean up the pollution it caused would also address the external cost directly. Requiring firms in the industry to install pollution control devices would address the external cost indirectly by reducing the pollution that causes harm to the environment or public health. Thus, all of these approaches are appropriate ways to correct for external costs.

Which of the Following Methods Could Be Used to Correct