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10 questions from this quiz
A 'nightwatchman' with minimal interference
The free-rider problem makes market provision impossible
Gov calculates externality value & imposes as tax
Demand is inelastic due to addictive properties
Excess demand is created
Creates excess supply of labour (unemployment)
When set below the free-market price
Companies can sell spare permits for profit
It would prevent electricity production too
They are often uncompetitive with monopoly power
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