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    Principles of Economics
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    Exam 10: Externalities
  5. Question
    When a Tax Is Used to Give Buyers and Sellers
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When a Tax Is Used to Give Buyers and Sellers

Question 89

Question 89

True/False

When a tax is used to give buyers and sellers in a market the incentive to take into account the external effects of their actions, it is said to be 'internalising an externality'.

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