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When a ____________ externality exists, many economists recommend ____________ those transactions.However when a third party is harmed from some transaction, many economists recommend _______________ that

  1. When a ____________ externality exists, many economists recommend ____________ those transactions.However when a third party is harmed from some transaction, many economists recommend _______________ that activity.

  1. Negative; taxing; subsidizing
  2. Positive; regulating; not interfering with
  3. Negative; banning; regulating
  4. Positive; not interfering with; taxing

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