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    Principles of Economics
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    Exam 10: Externalities
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    If the Government Were to Decide That for the Best
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If the Government Were to Decide That for the Best

Question 114

Question 114

Multiple Choice

If the government were to decide that for the best interests of the country each litre of petrol should cost $2.50 instead of $1.50, it would be making an assumption about:


A) subsidies
B) Pigovian taxes
C) the social cost of petrol
D) the private cost of petrol

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