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Thursday, January 12, 2017

2012 Multiple Choice (Market Failure) Externalities

2012 Multiple Choice (Market Failure) Externalities
Market Failure (externalities) cheat sheet here.


Answer - (B) Subsidies the producer

Understand that the Government really can only do two things: tax or subsidies.
If it a positive externality, we want more of it....
So society subsidises the production of the good


Answer - 59 (D) 
Answer - 60 (B)




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