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    Microeconomics
  4. Exam
    Exam 11: Market Failure and Externalities
  5. Question
    To Internalise a Negative Externality, an Appropriate Public Policy Response
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To Internalise a Negative Externality, an Appropriate Public Policy Response

Question 3

Question 3

Multiple Choice

To internalise a negative externality, an appropriate public policy response would be to


A) have the government take over the production of the good causing the externality.
B) ban the production of all goods creating negative externalities.
C) tax the good.
D) subsidise the good.

Correct Answer:

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