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    Foundations of Macroeconomics
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    Exam 10: Externalities
  5. Question
    When the Government Uses a Private Subsidy in a Market
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When the Government Uses a Private Subsidy in a Market

Question 138

Question 138

Multiple Choice

When the government uses a private subsidy in a market with an external benefit,to reach the efficient quantity of production,the subsidy must be equal to the marginal


A) social benefit.
B) cost of production.
C) private benefit.
D) external benefit.
E) external cost.

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