The Third Component of the Control of an Externality in a Tradable

question 15

Multiple Choice

The third component of the control of an externality in a tradable permits system ________.

• A) is allowing parties to respond to incentives by choosing the most efficient means of abatement
• B) involves providing incentives for abatement by internalizing the cost of the harm done by the pollution.
• C) involves reflecting in the prices of goods and services, the costs of abatement and the social costs of the harm from the remaining pollution.
• D) is allowing states to decide how best to decrease dangerous air pollution in the most cost effective manner.

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Definitions:

Communication Competency

The ability to effectively convey, receive, and interpret messages and information through verbal, nonverbal, and written expressions.

Routinely Ignored

Describes something that is consistently overlooked or neglected, often due to habitual inattention.

Undermined

Weakened or damaged, typically in a gradual or subtle way.

Overpaid

Receiving compensation that exceeds the perceived value or market worth of one's work or role.