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One Way to Solve Negative Externality Problems Is

Question 32

Multiple Choice

One way to solve negative externality problems is


A) to organize a limited boycott of the products.
B) subsidize the externalities.
C) eliminate transactions costs when property rights are not legally established.
D) issue pollution permits to polluting firms and establish a system of cap-and-trade.
E) establish and enforce patents and copyrights.

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