Which of the Following Is an Environmental Policy Based on Marketable

question 58

Multiple Choice

Which of the following is an environmental policy based on marketable pollution permits?

• A) a charge to automobile drivers of 10 cents for 100 units of pollutants emitted
• B) paying automobile drivers 10 cents for each 10-percent reduction in automobile emissions
• C) allowing automobile drivers to buy and sell the right to a certain level of automobile emissions
• D) ignoring pollution and letting private markets operate without government interference

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Definitions:

Consumer Goods

Items bought by the typical consumer for personal use.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing to allocate resources in a certain way.

Linear Production

A production process where there is a constant ratio of inputs to outputs, typically represented by a straight line in graphical analysis.

Cabbages

Leafy green, red, or white biennial plants grown as cool-season vegetables, often used in salads and other dishes.