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Congress Passed a New Law Taxing Car Producers Based on the Amount 5 Points of Pollution Their Factories Release. This New Law Is an

Question

Congress passed a new law taxing car producers based on the amount 5 points of pollution their factories release. This new law is an example of which role of government? discouraging negative externalities promoting competition in the market protecting consumers preventing labor unions

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Answer

The new law taxing car producers based on pollution output exemplifies the role of government in discouraging negative externalities.