Irrespective of whether an externality is positive or negative, all solutions share the same goal of:
A)moving the allocation of resources closer to the market equilibrium
B)reducing pollution
C)moving the allocation of resources closer to the social optimum
D)increasing the conservation of natural resources

Question

Quizplus · Accepted Answer

The goal of solving externalities, whether positive or negative, is to move the allocation of resources closer to the social optimum. This means that the optimal level of production and consumption is achieved, taking into account both private and social costs and benefits. Moving towards the social optimum ensures that resources are allocated efficiently, resulting in economic growth, environmental sustainability, and social welfare.

Irrespective of Whether an Externality Is Positive or Negative, All