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If the Government Taxes Producers That Create Pollution,the Government's Policy

Question 212

Multiple Choice

If the government taxes producers that create pollution,the government's policy


A) allows the producers to pollute more by increasing their costs.
B) results in less production because the producers' costs have risen.
C) eliminates pollution entirely by shifting the supply curve leftward.
D) allows the firms to pass along higher costs but doesn't cut pollution.
E) forbids the firms from passing along higher costs.

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