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Tradable Allowances Are ______ to Pigouvian Taxes When the Position

Question 102

Multiple Choice

Tradable allowances are ______ to Pigouvian taxes when the position of the supply curve is ______, making it difficult to know the exact size of the tax.


A) superior; unknown
B) superior; known
C) inferior; unknown
D) inferior; known

Correct Answer:

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