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    Exam 4: Market Failures Caused by Externalities Asymmetric Information
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    Since It's Not Possible for Governments to Know the Costs
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Since It's Not Possible for Governments to Know the Costs

Question 73

Question 73

Multiple Choice

Since it's not possible for governments to know the costs of pollution abatement as well as the polluters know themselves, then there is a(n)


A) asymmetric information problem.
B) externality problem.
C) moral hazard problem.
D) problem with the law of demand.

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