The government corrects for externalities in all of the following ways EXCEPT
A) taxes.
B) regulation.
C) lobbying.
D) subsidies.

Question

Quizplus · Accepted Answer

Lobbying is not a way for the government to correct externalities. Taxes and subsidies are used to influence behavior in a way that benefits society as a whole, while regulations are used to mandate certain behaviors or practices. Lobbying is a strategy used by individuals or groups to influence the government in their favor, but it is not a direct way for the government to correct for externalities.

The Government Corrects for Externalities in All of the Following