What policy approach would an economist propose to internalize ...

[Caiter2013]

What policy approach would an economist propose to internalize the externalities created by resource use? What is the basis for, and objection to, this type of policy?
 
  What will be an ideal response?

Question 2

Autarchy as used in the text refers to
 
  (a) an economy that does not trade.
  (b) an economy that trades primary products in exchange for manufactures.
  (c) developing country dictatorships.
  (d) the caste system and related social structures.

[janieazgirl]

Answer to Question 1

The answer should discuss creating and improving the functioning of markets as the preferable policy approach, as opposed to standard-setting and direct provision. The basis for such an approach is the efficiency argument. Objections could cite examples where market instruments might not suffice.

Answer to Question 2

A

[Caiter2013]

Thanks for the timely response, appreciate it

[amcvicar]

TYSM