NO.PZ2022120703000004
问题如下：
Negative externalities:选项：
A.result from internalization of costs. B.result in private costs that are higher than societal costs. C.result in societal costs that are not reflected in the prices of goods.解释：
C is correct?because "the term externalities refers to situations where the production or consumption of goods and services creates costs or benefits to others that are not reflected in the prices charged for them...when externalities are negative, private costs are lower than societal costs...leading to 'market failures'...internalisation refers to all measures (public or private) to ensure that externalities become reflected in the prices of commercial goods and services."
A is incorrect because "...governments should tax polluters an amount equivalent to the cost of the harm incurred by others. Such a tax would yield the market outcome that would have prevailed with adequate internalisation of all costs by polluters. Internalisation refers to all measures (public or private) to ensure that externalities become reflected in the prices of commercial goods and services." Hence, internalization of costs would eliminate negative externalities.
B is incorrect because "when externalities are negative, private costs are lower than societal costs, resulting in market outcomes which may not be efficient or, in other words, leading to ‘market failures’."
Negative externalities:
A
result from internalization of costs.
B
result in private costs that are higher than societal costs.
C
result in societal costs that are not reflected in the prices of goods.
