Other Things Equal, If the Government Increased the Quantity of Pollution

question 98

Multiple Choice

Other things equal, if the government increased the quantity of pollution rights to be sold,

• A)pollution would not be affected
• B)the price of pollution rights would rise, and the amount of pollution would decrease
• C)the price of pollution rights would fall, and the amount of pollution would decrease
• D)the price of pollution rights would fall, and the amount of pollution would increase
• E)the price of pollution rights would rise, and the amount of pollution would increase

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Definitions:

Management Fee Revenue

Income earned by an entity for providing managerial services or advice to other companies.

Supplying Service

The act of providing a service to customers, clients, or inside an organization as opposed to delivering a tangible product.

Cost

The amount of money or resources expended to acquire an asset, service, or achieve a specific objective.

Cash

Money in the form of currency, which includes bills and coins, that can be used to purchase goods and services.