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    Macroeconomics Study Set 68
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    Exam 4: Market Failures Caused by Externalities Asymmetric Information
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    A Market for Pollution Rights Can Be Expected to
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A Market for Pollution Rights Can Be Expected to

Question 68

Question 68

Multiple Choice

A market for pollution rights can be expected to


A) eliminate all pollution.
B) produce a shortage of pollution.
C) encourage potential polluters to increase emissions.
D) provide potential polluters with a monetary incentive to reduce emissions.

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