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In Order to Increase a Society's Total Welfare, a Production

Question 42

Multiple Choice

In order to increase a society's total welfare, a production process that produces a negative externality should be _____.​


A) taxed
B) encouraged to produce goods in excess of the socially optimum level​
C) prohibited​
D) subsidized if the good is produced for foreign markets​
E) subsidized if the good is produced for the domestic market​

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