Which of the following statements is not an example of the use of persuasion to correct (or adjust for)an externality?
A)Maggie asks her neighbor to keep his dog quiet at night.
B)An environmental group conducts a sit-in at a chemical factory to demand that the firm stop polluting rivers.
C)A judicial court imposes a fine on a reckless driver.
D)The government taxes an oil refinery for creating air pollution.

Question

Quizplus · Accepted Answer

Imposing a fine on a reckless driver is not an example of using persuasion to correct an externality. It is a form of punishment. The other options involve attempts to persuade individuals or organizations to change their behavior to reduce negative externalities.

Which of the Following Statements Is Not an Example of the Use