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If Government Associates an External Benefit with the Production of a Good

Question 108

Multiple Choice

If government associates an external benefit with the production of a good or service, it may correct for the misallocation of resources by shifting the


A) supply curve to the left.
B) demand curve to the left.
C) supply curve to the right.
D) demand curve to the right.
E) supply and demand curves to the left.

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