Suppose Jonesʹ Company and Smithʹs Company Both Pollute

question 135

Multiple Choice

Suppose Jonesʹ company and Smithʹs company both pollute. Under a system of marketable pollution permits, which of the following must be true in order for Smith and Jones to benefit from trading the right to pollute?

• A)Smith and Jones must be able to reduce pollution at exactly the same cost.
• B)Smith and Jones must have different abatement costs.
• C)Smith and Jones must have a social conscience and must be devoted to pollution abatement.
• D)The government must direct Smith and Jones toward beneficial trades.

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Definitions:

Low-context Culture

Cultures where communication is explicit, messages are direct, and understanding does not heavily rely on contextual cues or shared background.

Example

A specific case or instance used to illustrate a concept, principle, or process.

Ethical Standards

Principles that guide behavior and actions based on what is morally right and wrong.

Culture

The collective beliefs, practices, languages, creations, historical accounts, folklore, and structures of a community that are transmitted through successive generations.