Question

Positive externalities can be internalized using persuasion, but persuasion is not effective with negative externalities.

a. True
b. False

Answer 1

b. False

Expb. False

Answer 2

The correct answer is B. false.
It is possible to internalize both positive and negative externalities using persuasion. You can persuade someone to tone down their positive or negative attitude, even though the latter may be a bit more difficult to achieve; however, it is not impossible.