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Environmental Externalities

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Multiple Choice

What is an environmental externality?

  1. A cost or benefit that is imposed on a third party as a result of an economic transaction.
  2. A cost or benefit that is imposed on a third party as a result of a natural event.
  3. A cost or benefit that is imposed on a third party as a result of a government policy.
  4. A cost or benefit that is imposed on a third party as a result of a technological innovation.
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