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A Corrective Subsidy Induces the ________ Toward the Socially Optimal

Question 191

Multiple Choice

A corrective subsidy induces the ________ toward the socially optimal level.


A) consumers affected by a negative externality to increase the quantity consumed
B) producers creating a negative externality to increase the quantity produced
C) consumers benefiting from a positive externality to increase the quantity consumed
D) producers generating a positive externality to reduce the quantity produced

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