A congestion toll imposed on a highway driver to force the driver to take into account the increase in travel time she imposes on all other drivers is an example of internalizing the externality.
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Q7: Government intervention in the economy with the
Q8: The government can internalize externalities by taxing
Q9: A technology spillover is a type of
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Q13: Barking dogs cannot be considered an externality
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Q15: Markets sometimes fail to allocate resources efficiently.
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Q17: Buyers and sellers neglect the external effects
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