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Public Solutions to Externalities
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Public Solutions to Externalities
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7. Externalities / Public Solutions to Externalities / Problem 2
Problem 2
What is a potential benefit of creating a market for pollution permits?
A
It guarantees zero pollution.
B
It increases the overall level of pollution.
C
It allows for the trading of pollution rights, leading to efficient allocation based on need.
D
It eliminates the need for government intervention in pollution control.
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