Question 39 Which of the following is true of a negative externality? The government can use subsidies to encourage firms to internalize the externality. O Its existence always requires corrective measures by the government. Some benefits accrue to a third party. The government must take over the production of this good so that the externality can be internalized. Some costs are borne by a third party.
Question 39 Which of the following is true of a negative externality? The government can use subsidies to encourage firms to internalize the externality. O Its existence always requires corrective measures by the government. Some benefits accrue to a third party. The government must take over the production of this good so that the externality can be internalized. Some costs are borne by a third party.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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