In Some Cases, Tradable Pollution Permits May Be Better Than

question 62

Multiple Choice

In some cases, tradable pollution permits may be better than a corrective tax because

• A)pollution permits allow for a market solution while a corrective tax does not.
• B)pollution permits generate more revenue for the government than a corrective tax.
• C)pollution permits are never preferred over a corrective tax.
• D)the government can set a maximum level of pollution using permits.

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Definitions:

Vertical Specialization

Vertical specialization refers to the degree to which tasks within an organization are subdivided into separate jobs.

Mechanistic

Describes organizational structures or systems that are highly formal, centralized, and governed by strict procedures and hierarchies.

Organic

Characterizing organizations or systems that are flexible, adaptive, and decentralized in nature.

Horizontal Specialization

Refers to the division of labor where tasks are subdivided into smaller, specialized tasks across a horizontal plane within an organization.