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8. What is the general goal policymakers try to achieve to correct for externalities? a. They always allow the free-market to determine price and quantity, since this is always the most efficient outcome. 21 b. They prefer to enact command regulations because these are usually better than market-based solutions. C. They try to get decision-makers to internalize the external effects of their choices. d. They always rely on private solutions like moral codes and charities, because these always work better than government action. 9. What were the two big environmental concerns we worried about in the 1980s which have largely been solved with smart public policies? a. The ozone hole and climate change. b. Climate change and acid rain. C. The ozone hole and acid rain. d. All of the above answers are correct. B_10. Monte owns a dog; the dog's barking annoys Monte's neighbor, Teresa. Suppose that the benefit of owning the dog is worth $6000 to Monte and that Teresa bears a cost of $9000 from the barking. Assuming Monte has the legal right to keep the dog, a possible private solution to this problem which leaves both parties better off would be a. Monte pays Teresa $7001 for her inconvenience. b. Teresa pays Monte $8,000 for his inconvenience. c. Monte pays Teresa $6000 to give the dog to his parents who live on an isolated farm. d. Teresa pays Monte $11000 to give the dog to his parents who live on an isolated farm