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Question

The use of agricultural pesticides affects not only the manufacturers who make them and the farmers who use them but also many others who breathe the air or drink the water contaminated by these pesticides. When a market exhibits such side effects, they are called externalities.


A

True

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B

False

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Solution

The correct option is A

True


True. The use of agricultural pesticides affects not only the manufacturers who make them and the farmers who use them but also many others who breathe the air or drink the water contaminated by these pesticides. When a market exhibits such side effects, they are called externalities.


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