When individuals take externalities into account when making decisions, economists say they are:
a. internalizing the externality.
b. eliminate the externality.
c. subsidize a positive externality.
d. subsidize a technology spillover.
Answer: a. internalizing the externality.
Economics
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When one person enjoys the benefit of a tornado siren, she reduces the benefit to others
a. True b. False Indicate whether the statement is true or false
Economics
How do a partnership and a corporation differ?
A) Partnerships have unlimited liability while corporations have limited liability. B) Corporations can issue stocks and bonds, while partnerships cannot. C) Corporations face more taxes than do partnerships. D) All of these are differences between the two types of businesses.
Economics