Which term best describes a refusal to buy or use something in order to bring about change, often used as a public solution to externalities?

• A. Taxation
• B. Regulation
• C. Boycott
• D. Subsidy

Answer: (C)

Verified step by step guidance

1. Understand the concept of externalities: Externalities occur when a third party is affected by the actions of others, either positively or negatively, without compensation.
2. Recognize that public solutions to externalities aim to change behavior to reduce negative effects or encourage positive effects.
3. Review the options: Taxation involves imposing a tax to discourage harmful behavior; Regulation involves rules or laws to control behavior; Subsidy involves financial incentives to encourage beneficial behavior.
4. Identify that a 'Boycott' is a voluntary refusal to buy or use a product or service to pressure change, often used by consumers as a form of protest against negative externalities.
5. Conclude that the term describing a refusal to buy or use something to bring about change is 'Boycott', as it directly involves consumer action rather than government intervention.