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Suppose California Adopts Environmental Rules That Permit Manufacturers to Emit

Question 2

Multiple Choice

Suppose California adopts environmental rules that permit manufacturers to emit more pollutants into the air, which affects air quality in Nevada and other neighboring states. This is an example of a/an ________.


A) intergovernmental transfer
B) coordination problem
C) optimal response
D) unitary system
E) negative externality

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