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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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    Internalizing an Externality
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Internalizing an Externality

Question 36

Question 36

Multiple Choice

Internalizing an externality:


A) is solely in the purview of governments.
B) entails a solution that provides incentives to private actors to act efficiently.
C) means exacerbating the external effect.
D) does not involve minimizing the impact of free riders.

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