In Singapore, littering fines are strictly enforced. This is an example of a policy that a. relies on the Coase Theorem. b. discriminates against foreigners. c. relies on moral codes to reduce the pollution externality. d. relies on incentives to reduce the pollution externality.

Question

Clayton Lucero

Social Studies

3 May, 18:05

In Singapore, littering fines are strictly enforced. This is an example of a policy that a. relies on the Coase Theorem. b. discriminates against foreigners. c. relies on moral codes to reduce the pollution externality. d. relies on incentives to reduce the pollution externality.

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Lindsey · Answer 1

Option D

Explanation:

In simple words, externality refers to the situation when an unrelated third party suffers certain consequences, whether positive or negative, due to any acts or decision of some other individual party or parties.

Thus, enforcing legal fines on littering will result into more clean roads and cities reducing population which will further result in less diseases and harm to the people living in the society. Thus, individuals will suffer less due to actions of others, that is, no negative externality.