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:

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

External Locus of Control

A belief that one's successes or failures result from external factors beyond one's control.

Rotter

Julian B. Rotter, a psychologist known for his work on locus of control, a theory about how people perceive the source of life events and outcomes as either within themselves or externally.

Big Five Model

A psychological theory that describes human personality through five broad dimensions: openness, conscientiousness, extraversion, agreeableness, and neuroticism.