People always face trade-offs because
A) they always have more than one use for their time and money.
B) they buy goods with money.
C) trading takes place in a market economy.
D) they can make themselves better off through trade.
Question 2
The purpose of an effluent fee is to
A) reduce the amount produced of a good and to raise the market price.
B) correct for pollution while keeping the price of the good the same as before the correction.
C) reward people producing externalities.
D) encourage producers to keep the quantity produced the same while lowering the price.
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