The problems of externalities are often solved through:
A)self-interest
B)moral codes and social sanctions
C)charity
D)all of the above

Question

Quizplus · Accepted Answer

The problems of externalities can be solved through a combination of self-interest, moral codes and social sanctions, and charity. Self-interest may lead individuals and firms to take actions that reduce externalities. Moral codes and social sanctions can encourage people to behave in socially responsible ways, even when they don't have a direct self-interest in doing so. Charity can provide resources to address externalities that are too large for individuals or private firms to tackle alone. Thus, all of the above methods can be used to address externalities.

The Problems of Externalities Are Often Solved Through