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If an Activity Generates a Positive Externality,the Government Can Make

Question 106

Multiple Choice

If an activity generates a positive externality,the government can make provision of that activity more efficient by _____,and if an activity generates a negative externality,the government can make provision of that activity more efficient by _____.


A) taxing it;banning it
B) subsidizing it;banning it
C) subsidizing it;taxing it
D) publicizing it;taxing it

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