Guns have large external costs for society. Which of the following policies will help minimize those external costs? 0000 A tax on gun ammunition. A subsidy on gun purchases. Allowing victims of gun violence to sue gun manufacturers in civil court. A quota on how many guns an individual can own.

ENGR.ECONOMIC ANALYSIS
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Guns have large external costs for society. Which of the following policies will help minimize
those external costs?
A tax on gun ammunition.
A subsidy on gun purchases.
Allowing victims of gun violence to sue gun manufacturers in civil court.
A quota on how many guns an individual can own.
Transcribed Image Text:Guns have large external costs for society. Which of the following policies will help minimize those external costs? A tax on gun ammunition. A subsidy on gun purchases. Allowing victims of gun violence to sue gun manufacturers in civil court. A quota on how many guns an individual can own.
Expert Solution
Step 1: Define Externality

An externality can be positive or negative. An externality will be negative when the production or consumption of an item causes a cost to a third party.

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