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Suppose that the production of energy causes air pollution in Smalltown, and adverse health effects to 25% of Smalltown residents. A tax is imposed on

Suppose that the production of energy causes air pollution in Smalltown, and adverse health effects to 25% of Smalltown residents. A tax is imposed on the pollution-causing activity. For efficiency, the tax revenues should be used to fully compensate the residents who are affected by the pollution. Group of answer choices True False

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