Name: 
 

CHAPTER 10: Externalities



Short Answer
 
 
IN THE NEWS: Economic Policy and Climate Change
Read the News Article and answer the following questions.
 

 1. 

From an economic perspective, why does the writer suggest that it makes sense to allow firms to pay for the right to pollute?
 

 2. 

“What do you think will be the most difficult part of administering this program.”
 



 
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