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A Negative Externality Related to a Product

Question 89

Multiple Choice
A negative externality related to a product

A negative externality related to a product


A) results in underallocation of resources to that product.
B) results in overallocation of resources to that product.
C) can be corrected by government subsidies.
D) can be corrected by lowering the cost of production.
E) is an example of government failure.

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