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    Principles of Economics Study Set 1
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    Exam 11: Externalities, Property Rights, and the Environment
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    If the Government Wants to Increase Economic Efficiency, It Should
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If the Government Wants to Increase Economic Efficiency, It Should

Question 163

Question 163

Multiple Choice

If the government wants to increase economic efficiency, it should:


A) never tax goods.
B) never subsidize goods.
C) tax goods that entail positive externalities.
D) subsidize goods that entail positive externalities.

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