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Externalities: Social Benefits and Social Costs
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Externalities: Social Benefits and Social Costs
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7. Externalities / Externalities: Social Benefits and Social Costs / Problem 7
Problem 7
A city is experiencing high levels of air pollution due to traffic congestion. Which solution could help mitigate this negative externality?
A
Reducing public transportation options.
B
Implementing a congestion tax to reduce traffic and pollution.
C
Subsidizing gasoline prices.
D
Increasing the number of cars on the road.
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