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Annette [7]
3 years ago
7

How might the government address negative externalities?

Social Studies
1 answer:
astraxan [27]3 years ago
8 0

Answer:

Government can play a role in reducing negative externalities by taxing goods when their production generates spillover costs. This taxation effectively increases the cost of producing such goods. ... The use of such a tax is called internalizing the externality.

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