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    Principles of Economics Study Set 8
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    Exam 10: Externalities
  5. Question
    Negative Externalities Lead Markets to Produce a Smaller Quantity of a Good
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Negative Externalities Lead Markets to Produce a Smaller Quantity of a Good

Question 60

Question 60

True/False

Negative externalities lead markets to produce a smaller quantity of a good than is socially desirable, while positive externalities lead markets to produce a larger quantity of a good than is socially desirable.

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