Externalities can be corrected by each of the following except
A)self-interest.
B)moral codes and social sanctions.
C)charity.
D)normal market adjustments.

Question

Quizplus · Accepted Answer

Normal market adjustments are not always effective in correcting externalities as they often do not account for the cost of the externality. Self-interest, moral codes and social sanctions, and charity can all lead individuals or companies to take actions that help correct externalities.

Externalities Can Be Corrected by Each of the Following Except