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    Principles of Microeconomics Study Set 10
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    Exam 10: Externalities
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    A Corrective Tax
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A Corrective Tax

Question 5

Question 5

Multiple Choice

A corrective tax


A) allocates pollution to those factories that face the highest cost of reducing it.
B) is a form of regulation.
C) works well for all types of externalities.
D) is inferior to regulatory policy according to most economists.

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