Answer: the correct answer is D) encourages a private solution to a particular positive-externality problem.
Explanation: it encourages a private solution because the government reduces taxes if private companies donate to charities. Donating to charities is a positive externality because it contributes to the common welfare of a country.
C. Capitalism through free enterprise.
However in reality we in USA have a “mixed” economy. Government intervention to provide safety measures, subsidies etc.
The rigid social structure of India was made up of different Varnas in a Caste System. This Caste System was a class system based on heredity.
That’s correct answer is 2
