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7. Externalities
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Problem 1
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Problem 4
Problem 5
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Problem 7
Problem 8
Problem 9
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Problem 15
7. Externalities
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7. Externalities / Public Solutions to Externalities / Problem 7
Problem 7
What is a potential advantage of using subsidies to address positive externalities?
A
They can increase production to a socially optimal level.
B
They eliminate the need for private investment.
C
They reduce government spending.
D
They always lead to market inefficiencies.
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