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The Specificity Rule States That

Question 37

Multiple Choice

The specificity rule states that:


A) The government should have a uniform policy in place to address the specific distortions in the economy.
B) it is more efficient to use a policy tool that is closer to the distortion that is caused by an externality.
C) property rights must be changed in order to correct for an externality.
D) a government tax is the best remedial measure for an externality.

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