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    Modern Principles of Economics Study Set 2
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    Exam 10: Externalities: When the Price Is Not Right
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    Which of the Following Suggests That Private Markets Can Be
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Which of the Following Suggests That Private Markets Can Be

Question 26

Question 26

Multiple Choice

Which of the following suggests that private markets can be effective in dealing with external costs and benefits?


A) external technology policy
B) the Coase theorem
C) the law of diminishing returns
D) the ―invisible hand‖

Correct Answer:

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