In Some Cases, Selling Pollution Permits Is a Better Method

question 287

Multiple Choice

In some cases, selling pollution permits is a better method for reducing pollution than imposing a corrective tax because

• A)it is hard to estimate the market demand curve and thus charge the "right" corrective tax.
• B)selling pollution permits create a net increase in pollution.
• C)Corrective taxes distort incentives.
• D)Corrective taxes provide greater flexibility to firms that can reduce pollution at a low cost.

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Definitions:

Competitive Games

Activities or sports where individuals or teams compete against each other under established rules, aiming to achieve a defined victory condition.

Group Dating

Social gatherings where multiple couples go out on a date together, commonly found in early adolescence as a way to ease into dating.

Parental Monitoring

The strategies utilized by parents to oversee their children's activities, with the aim of protecting, guiding, and understanding their development and behavior.

Autonomy

The capacity to make an informed, uncoerced decision independently.