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    Economics Principles and Policy Study Set 1
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    Exam 16: Externalities, the Environment, and Natural Resources
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    Under a System of Financial Penalties for Polluters
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Under a System of Financial Penalties for Polluters

Question 179

Question 179

Multiple Choice

Under a system of financial penalties for polluters:


A) Firms could pollute all they wanted to.
B) Firms would have to pay a tax for each unit of pollution created.
C) Firms would be encouraged to pollute less.
D) All of the above are correct.

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