An Advantage Emission Taxes and Permits Have Over Direct Controls

question 66

Multiple Choice

An advantage emission taxes and permits have over direct controls is that the former

• A)work well even if pollution output cannot be accurately measured.
• B)can respond quickly to new information about the dangers of particular pollutants.
• C)make it in firms' interests to reduce pollution in the most efficient manner possible.
• D)reduce pollution to zero.

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Definitions:

ANOVA

Stands for Analysis of Variance, a statistical method used to compare means of three or more samples to understand if at least one of the sample means differs significantly from the others.

Mean Square

A statistical measure used in variance analysis, computed by dividing the sum of squares by the degrees of freedom.

Error

The difference between the observed value and the true value of a parameter in data, indicative of the degree of inaccuracy or deviation.

P-value

In hypothesis testing, the p-value is the probability of obtaining test results at least as extreme as the observed results, under the assumption that the null hypothesis is correct.