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To Correct for a Negative Externality, a Government Might Impose

Question 110

Multiple Choice

To correct for a negative externality, a government might impose a uniform tax related only to the physical quantity of pollution if


A) the administrative costs are high.
B) the cost of ascertaining the actual economic costs are relatively small.
C) the economic damages are zero.
D) the economic damages associated with the pollution are different across different locations.

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