Automobile Emissions Generate Pollution and Cause Higher Costs and Discomfort

Multiple Choice

Automobile emissions generate pollution and cause higher costs and discomfort to residents of a city.In this case:

A) too little of society's resources is being used to operate automobiles.
B) the externality can be internalized into the market by imposing a specific tax on drivers.
C) there is an external benefit to society from operating automobiles.
D) the externality can be internalized into the market by granting a specific subsidy to drivers.