Automobile Emissions Generate Pollution, Have Costs, and Cause Discomfort to Residents

Multiple Choice

Automobile emissions generate pollution, have costs, and cause 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 by imposing a specific tax on drivers.
C) there is an external benefit to society from operating automobiles.
D) the externality can be internalized by granting a specific subsidy to drivers.