Which of the following is the best example of a negative externality and the appropriate plan for eliminating it?

Which of the following is the best example of a negative externality and the appropriate plan for eliminating it? Correct Answer Air pollution from a power plant is blowing downwind and harming the trees in your community. Tax the production of electricity.

E-The appropriate fix to a negative externality is to tax either the producers or the consumers of electricity. The health problems of the smoker are not a negative externality, as the smoker is not a third party. The nonsmoking spouse of the smoker whose health is impaired would be a negative externality.

Related Questions

With the presence of a negative externality, which of the following would internalize (or correct) the externality?
With the presence of a positive externality, which of the following would correct the externality?
Which of the following scenarios best describes a negative externality?