Asked by Brian Doherty on Apr 27, 2024
Verified
Some government policies provide incentives for private decision makers to choose to solve the problem of externalities on their own. What term do we use to describe such policies?
Externalities
Financial implications or effects that influence bystander third parties and may be either beneficial or harmful.
Incentives
Factors that motivate or encourage individuals to perform actions or make decisions.
- Evaluate the role of government incentives in resolving problems of externalities.
Verified Answer
ZK
Zybrea KnightMay 03, 2024
Final Answer :
We use the term market-based policies to describe such policies.
Learning Objectives
- Evaluate the role of government incentives in resolving problems of externalities.
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