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When Domestic Production Causes Pollution That Imposes an External Cost

Question 29

Multiple Choice

When domestic production causes pollution that imposes an external cost on the country, the country may export the wrong products because:


A) the price of the product should be lower, which could lead to less production of the product.
B) the price of the product should be lower, which could lead to no exports of the product.
C) the price of the product should be higher, which could lead to more exports of the product.
D) the price of the product should be higher, which could lead to no exports of the product.

Correct Answer:

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