Question

Internalizing external costs

-increases the chance for environmental degradation.
-involves making the market price approach the true cost of an economic goo
-omits the costs of taxes.
-fails to include the cost of pollution.
-is a simple change to make.

Answer 1

• increases the chance for environmental degradation
• fails to include the cost of pollution

Step-by-step explanation:

• The external cost is known as externalities and refers to uncompensated social or environmental effects. An example of it is the fuel station when you purchase the fuel for the car you pay for the product that is internal cost and not for the air pollution it creates.