When Comparing a System of Emission Taxes to a System

question 76

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

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Definitions:

Immediate Reinforcer

refers to a reward that occurs directly after a behavior, enhancing the likelihood of that behavior occurring again in the future.

Latent Learning

Learning that occurs without immediate reinforcement and is not demonstrated until there is an incentive to perform.

Law of Effect

A principle in psychology stating that responses closely followed by satisfaction will become firmly attached to the situation and therefore more likely to recur in similar situations.

Spontaneous Recovery

The reappearance of a conditioned response after a period of lessened response.