Given That Different Firms Typically Have Different Costs of Pollution

question 63

Multiple Choice

Given that different firms typically have different costs of pollution reduction,

• A)it is clear that only a moral solution can actually achieve pollution reduction.
• B)tradable pollution permits will help to reduce the total costs of pollution abatement.
• C)the optimal emissions tax is thus easier to compute.
• D)there is a role for government to establish absolute limits on pollution.
• E)tradable pollution permits will help to reduce the marginal costs of pollution.

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Definitions:

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A term popularized by Time publisher Henry Luce in 1941, describing the 20th century as a period dominated by the United States in political, economic, and cultural influence worldwide.

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The period of economic growth and widespread welfare experienced by many countries following the end of World War II.

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An economic system where private businesses operate in competition and largely free of state control, emphasizing the importance of a market economy.

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The part of the United States government responsible for implementing military policies and maintaining armed forces.