As a Method of Pollution Control, Tradable Emissions Permits, or "Cap

question 10

Multiple Choice

As a method of pollution control, tradable emissions permits, or "cap and trade",

• A) allow pollution to continue unabated, but only at a huge price to polluting firms.
• B) are more effective than emissions taxes when pollution is hard to measure.
• C) are not a morally acceptable method of pollution control.
• D) are an example of paternalistic social regulation.
• E) have the advantage of decentralized decision making (like emissions taxes) while also setting the maximum permissible level of pollution (like direct controls).

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Definitions:

Annual Cash Dividends

The total amount of cash dividends that a company pays to its shareholders in one fiscal year.

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock.