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1. Which of the following activities creates a positive externality? (A) Power plants burn coal to generate electricity and air pollution. (B) Consumers smoke cigarettes.

1. Which of the following activities creates a positive externality? (A) Power plants burn coal to generate electricity and air pollution. (B) Consumers smoke cigarettes. (C) The Chicago city government renovating the Union Station, which is a railway hub for many Midwest states, and increasing its operational efficiency. (D) The government of Iceland issuing more fishing license, which allows more ships to fish in the northern Atlantic

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