When Comparing a System of Emission Taxes to a System

question 73

Multiple Choice

When comparing a system of emission taxes to a system of tradable pollution permits,the same amount of pollution could be abated in each as long as

• A)the marginal benefit of abatement curve was horizontal.
• B)the emission tax rate,t,was applied equally to all firms.
• C)the cap on emissions was chosen such that the equilibrium price of the permits,p×,was equal to the emissions tax rate,t.
• D)the marginal cost of abatement was equal across all firms.
• E)the cap on emissions was chosen such that the equilibrium price of the permits,p×,could rise over time.

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Definitions:

Democracy

A form of government in which power is vested in the hands of the people, either directly or through elected representatives.

Ethnic Parishes

Churches or parochial communities that cater to the cultural, linguistic, and spiritual needs of immigrants from the same ethnicity.

Roman Catholic Immigrants

Individuals who migrated and often faced discrimination due to their religious beliefs, particularly during periods of significant migration to countries like the United States in the 19th and early 20th centuries.

Separate Ethnic Parishes

Religious communities or congregations that are formed based on ethnic identity, often to preserve cultural traditions and languages.