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    Microeconomics Study Set 25
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    Exam 16: Externalities
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    If an Emissions Tax Is Too Low
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If an Emissions Tax Is Too Low

Question 127

Question 127

Multiple Choice

If an emissions tax is too low:


A) there will be too little pollution.
B) there will be too much pollution.
C) the marginal social cost of pollution will be less than the marginal social benefit of pollution.
D) there could be either too much or too little pollution.

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