Altering incentives so that people take account of the external effects of their actionsa. is called internalizing the externality. b. can be done by imposing a corrective tax. c. is the role of government in markets with externalities. d. all of the above are correct.

Altering incentives so that people take account of the external effects of their action is d. All of the above are correct.

Explanation:

Internalizing the externality means shifting the burden, or costs, from a negative externality, such as pollution or traffic congestion, from outside to inside (external to internal). This can be done through taxes, property rights, tolls, and government subsidies.

1. government controls industry through policy

2.government is both a consumer and a producer

4. government can use policy t influence economy

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