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.

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

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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