Asked by
Aisha Ahmad
on Oct 14, 2024
Verified
The only known way to eliminate externalities is through taxes or subsidies.
Externalities
Economic side effects or consequences that affect uninvolved third parties; can be either positive or negative.
- Absorb the concept and practical application of Pigouvian taxes and subsidies in remedying market imperfections due to externalities.
Verified Answer
AB
Learning Objectives
- Absorb the concept and practical application of Pigouvian taxes and subsidies in remedying market imperfections due to externalities.