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    Microeconomics Theory with Applications
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    Exam 18: Assymmetric Information, the Rules of the Game, and Externalities
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    The Presence of Negative Externalities
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The Presence of Negative Externalities

Question 7

Question 7

Multiple Choice

The presence of negative externalities:


A) does not create allocational distortions.
B) resources are overallocated.
C) is encountered only between firms.
D) resources are underallocated.

Correct Answer:

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