In Some Circumstances, Selling Pollution Permits May Be Better Than

question 57

True/False

In some circumstances, selling pollution permits may be better than levying a corrective tax.

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Definitions:

Catgut

A type of cord traditionally made from the natural fibers found in the intestines of animals, commonly used for musical instrument strings and surgical sutures.

Optimal Amount

The best or most efficient level of output or consumption that maximizes desired outcomes or minimizes costs.

R&D

Research and Development, referring to activities in connection with corporate or governmental innovation.

Interest-rate Cost

The expense incurred from borrowing money, typically expressed as a percentage of the principal amount.