Given That Different Firms Typically Have Different Costs of Pollution

question 28

Multiple Choice

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

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

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Definitions:

Cognitive Needs

Psychological requirements for understanding, curiosity, knowledge, and meaning.

Esteem Needs

According to Maslow's hierarchy, the human need for respect, self-esteem, and recognition from others.

Self-Actualization

A concept in psychology, particularly within the humanistic approach, referring to the realization of one's full potential, expressing one's creativity, quest for spiritual enlightenment, pursuit of knowledge, and desire to give to society.

Biological Drive

Innate impulses in living organisms that motivate behavior necessary for the survival of the individual and the species, such as hunger, thirst, and reproduction.