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.
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Feb 20, 2025