When wealthy alumni provide charitable contributions... - Solved MCQs & Answer

1932EconomicsMedium

When wealthy alumni provide charitable contributions to their universities to reduce the tuition payments of current students it is an example of?

Aa command-and-control policy

Ban attempt to internalize a negative externality

Ca Pigouvian tax

Dan attempt to internalize a positive externality

Correct answer

D. an attempt to internalize a positive externality

Explanation

The correct answer is an attempt to internalize a positive externality.

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