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Automobile Emissions Generate Pollution,have Health Costs for Pedestrians,and Cause Discomfort

Question 95

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Automobile emissions generate pollution,have health costs for pedestrians,and cause discomfort to residents of a city.In this case:


A) too little of society's resources are being used to operate automobiles.
B) the externality can be internalized by imposing a specific tax on drivers.
C) there is an external benefit to society from operating automobiles.
D) the externality can be internalized by granting a specific subsidy to drivers.

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