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MATCHING Match Each Term with the Correct Statement Below

question 40

Multiple Choice

MATCHING
Match each term with the correct statement below.
-represents a numeric or string value


Definitions:

Firms

Business entities that produce goods or provide services to consumers, aiming to maximize profits.

Pigouvian Taxes

Taxes imposed on any market activity that generates negative externalities (costs not reflected in the market price) to correct the market outcome.

External Costs

Costs that are not borne by the producers or users of a product or service, but by society or the environment.

Polluting Firms

Companies that release harmful substances into the environment as a byproduct of their production processes.

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