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    Macroeconomics Study Set 43
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    Exam 4: B: Market Failures: Public Goods and Externalities
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    Negative Externalities Are Likely to Cause
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Negative Externalities Are Likely to Cause

Question 88

Question 88

Multiple Choice

Negative externalities are likely to cause:


A) underproduction of goods.
B) overallocation of resources.
C) an increase in social welfare.
D) demand-side market failures.

Correct Answer:

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