Multiple Choice
Automobile emissions generate pollution and cause higher costs and discomfort to residents of a city.In this case:
A) too few of society's resources are being used to operate automobiles.
B) the externality can be internalized into the market by imposing a specific tax on drivers.
C) there is an external benefit to society from operating automobiles.
D) the externality can be internalized into the market by granting a specific subsidy to drivers.
Correct Answer:

Verified
Correct Answer:
Verified
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