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    Economics Study Set 1
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    Exam 18: Externalities
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    The Government Can Both Set the Efficient Level of Output
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The Government Can Both Set the Efficient Level of Output

Question 110

Question 110

Multiple Choice

The government can both set the efficient level of output in a market and maximize surplus by correcting for a negative externality by using:


A) a tradable allowance.
B) a tariff.
C) a subsidy.
D) a quota.

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