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    Price Theory and Applications
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    Exam 13: External Costs and Benefits
  5. Question
    Cap and Trade Is a System Aimed at Correcting for Externalities
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Cap and Trade Is a System Aimed at Correcting for Externalities

Question 19

Question 19

Multiple Choice

Cap and Trade is a system aimed at correcting for externalities by


A) imposing taxes.
B) establishing tradable permits.
C) placing quotas on specific firm's output.
D) limiting exports.

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