Once the Tradable Pollution Permits Have Been Issued to Firms

question 63

Multiple Choice

Once the tradable pollution permits have been issued to firms:

• A)each firm will reduce the level of pollution it generates.
• B)the government determines the price of the permits.
• C)firms with the highest cost of pollution abatement will have the greatest willingness to pay for the permits.
• D)firms with very low pollution abatement costs can purchase more permits.

---

Definitions:

Societal Culture

The shared beliefs, values, norms, and practices that characterize a society and influence its members' behaviors and perceptions.

Social Glue

The informal social bonds or relationships that hold a group or community together.

Norms

Established standards of behavior or guidelines that are considered normal within a group or society.

Values

are fundamental beliefs or ideals that guide the behavior, decisions, and actions of individuals and groups.