Protecting the environment for future use
Changing the balance of power between opposing interests in business
Intervening in the activity of the free market
Making prices reflect costs to everyone in society
Causing technological development to cease
21. A gasoline-conservation tax on the purchase of large automobiles, with the proceeds of the tax rebated to purchasers of small automobiles, is an example of
a specific directive
a market incentive modification
an optimal resource allocation
an alteration of a decision-making structure
an external cost
22. If there were no external costs, as they are described in the passage, which of the following would be true?
All technology-control methods would be effective.
Some resource allocations would be illegal.
Prices would include all costs to members of society.
Some decision-making structures would be altered.
The availability of common goods would increase.
23. The author assumes that, in determining what would be an optimal allocation of resources, it would be possible to
assign monetary value to all damage resulting from the use of technology
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