Tackle the Test: Multiple-Choice Questions

  1. Question

    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
    Which of the following policy tools is inefficient even when correctly administered?
  2. Question

    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
    An efficient Pigouvian subsidy for a good is set equal to the good’s
  3. Question

    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
    Which of the following is true in the case of a positive externality?
  4. Question

    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
    One example of a source of external benefits is
  5. Question

    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
    Marginal social benefit equals marginal private benefit plus