In order to correct the problems associated with external costs,
A) the signals given to the economy must change so that decision-makers will take into account all the costs of their actions.
B) the government must take over production of industries that are responsible for most of the pollution.
C) standards must be established that make it illegal to pollute.
D) the prices of all goods must be raised so people will consume less of the world's resources.
Answer: A
You might also like to view...
Suppose equilibrium for an economy occurs when C + I + G + X = $14 trillion. If the real Gross Domestic Product (GDP) is $13 trillion, then unplanned inventories are
A) increasing, and real Gross Domestic Product (GDP) will contract. B) increasing, and real Gross Domestic Product (GDP) will expand. C) decreasing, and real Gross Domestic Product (GDP) will expand. D) decreasing, and real Gross Domestic Product (GDP) will contract.
Unemployment compensation is an example of:
A) non-discretionary expenditures. B) discretionary expenditures. C) taxes. D) none of the above.