Multiple Choice
Suppose the government imposes a tax in a certain market in order to internalize an externality. This type of policy is based on which of the Ten Principles of Economics?
A) People face trade-offs.
B) People respond to incentives.
C) Markets are usually a good way to organize economic activity.
D) The cost of something is what you give up to get it.
Correct Answer:
Verified
Correct Answer:
Verified
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