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Q: An effort to reduce externalities, through taxation comparable to the cost of the damage caused...

Q: An effort to reduce externalities, through taxation comparable to the cost of the damage caused by the externality is a/an

A 1 : Standard

A 2 : Tradable permit regime

A 3 : Pigouvian tax

A 4 : Network externality

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Answer #1

Pigouvian tax- is correct

Pigouvian tax is the tax imposed on creator of negative externality equal to per unit damage to society.

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