Asked by
Vasile Ivascu
on Oct 26, 2024Verified
Imposing a Pigouvian tax on a good,establishing a system of tradable licenses,and assigning property rights are methods to alleviate the problems associated with:
A) private goods.
B) positive externalities.
C) public goods.
D) common resources.
Pigouvian Tax
A tax imposed on any market activity that generates negative externalities (costs not borne by the party causing them) to correct the market outcome.
Tradable Licenses
Permits that can be bought and sold, allowing the holder to engage in a particular activity or emit a certain amount of pollutants.
Common Resources
Goods that are accessible to all members of a society but have a limited supply, leading to potential overuse.
- Examine strategies for managing common resources and public goods, including Pigouvian taxes, tradable licenses, and property rights.
Verified Answer
EB
Learning Objectives
- Examine strategies for managing common resources and public goods, including Pigouvian taxes, tradable licenses, and property rights.