Multiple Choice
Government can internalize externalities by
A) taxing goods with negative externalities and subsidizing goods with positive externalities.
B) taxing goods with positive externalities and subsidizing goods with negative externalities.
C) taxing goods with either positive or negative externalities.
D) subsidizing goods with either positive or negative externalities.
E) letting private markets determine output levels.
Correct Answer:

Verified
Correct Answer:
Verified
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