Government Policies On Externalities Quizzes, Questions & Answers

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Government Policies on Externalities Quiz

Government Policies On Externalities Quiz

Questions: 8 | Attempts: 10 | Last updated: Nov 12, 2025

Sample Question 1
What is an externality?

A cost or benefit incurred by a third party

A government regulation

A type of tax

A market failure

Sample Question 2
Which of the following is a positive externality?

Pollution from a factory

Education

Traffic congestion

Overfishing

Sample Question 3
What is a common government response to negative externalities?

Subsidies

Taxes

Regulations

All of the above