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Driving Your Automobile in Los Angeles During the Rush Hour

Question 122

Multiple Choice

Driving your automobile in Los Angeles during the rush hour causes externalities because


A) it adds congestion and pollution from auto exhaust, reducing the welfare of others.
B) gasoline is scarce and you must pay for it.
C) gasoline is a public good.
D) your actions will benefit others even though you will be unable to charge them for the service.

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