Multiple Choice
If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are less than the external costs,
A) Taxing it could bring us closer to the efficient solution
B) Subsidizing it could bring us closer to the efficient solution
C) Neither a tax or a subsidy could bring us closer to the efficient solution
D) None of the above is true.
Correct Answer:
Verified
Correct Answer:
Verified
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