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Question 6 The reason that the cost of a tax (the tax incidence) is divided as it is depends fundamentally on the principal-a
Question 8 Deadweight loss from a tax occurs because the government creates a quota consumers and producers value the trades
Question 10 How does providing subsidized crop insurance affect the corn market? Less crops are grown than is efficient, pric
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Answer #1

Q6. Option 2. Free rider problem occurs when people start to use without limits which leads to over exploitation

Q7. Option 1.

Q8. Option 3. As it leads to inefficiency of market

Q9. Option 2

Q10. Option 2. Subsidies creates imbalance between demand and supply which leads to market imbalances

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