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Georgia [21]
3 years ago
14

Altering incentives so that people take account of the external effects of their actionsa. is called internalizing the externali

ty.b. can be done by imposing a corrective tax.c. is the role of government in markets with externalities.d. All of the above are correct.
Social Studies
1 answer:
disa [49]3 years ago
8 0

Answer:

Altering incentives so that people take account of the external effects of their action is d. All of the above are correct.

Explanation:

Internalizing the externality means shifting the burden, or costs, from a negative externality, such as pollution or traffic congestion, from outside to inside (external to internal). This can be done through taxes, property rights, tolls, and government subsidies.

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