The Main Difference Between Tradable Allowances and Taxes Is

question 266

Multiple Choice

The main difference between tradable allowances and taxes is:

• A) only large firms may trade pollution allowances.
• B) tradable allowances result in a more efficient outcome.
• C) taxes decrease firms' profits.
• D) purely political.

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Definitions:

Board Of Directors

A group of individuals elected to represent shareholders and oversee the major decisions and policies of a company.

Common Stock

Equity ownership in a corporation, with voting rights and the potential for dividends, representing a claim on a portion of the company's profits.

Supernormal Growth

A temporary period during which a company experiences significantly higher than average growth rates.

Dividend

A corporation's distribution of earnings to its shareholders, commonly as a profit share.