Examlex
Subtract the polynomials and simplify.
Pollution Permits
Legal rights granted by governments to emit a specific amount of pollutants into the environment.
Corrective Tax
A tax designed to incentivize socially desirable behavior, often used to correct for the negative externalities of an action or consumption.
Coase Theorem
A principle that asserts that if private parties can bargain over the allocation of resources without cost, they can solve the problem of externalities on their own.
Externalities
Economic outcomes that impact third parties not directly involved, which can either be advantageous or disadvantageous.
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