If the Government Creates a System of Pollution Permits, Firms

question 57

Multiple Choice

If the government creates a system of pollution permits, firms with low marginal costs of reducing pollution will

• A) hold on to the permits they have been issued and not attempt to buy more.
• B) not be issued permits.
• C) buy permits from other firms.
• D) sell permits to other firms.

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Definitions:

John Calvin

A French theologian, pastor, and reformer in Geneva during the Protestant Reformation, known for his influential work in the development of the Christian theology system known as Calvinism.

Predetermined

Established or decided in advance, not occurring by chance or without prior planning.

Salvation

Within Christian doctrine, the liberation from sin and its resulting punishments is considered to occur through belief in Christ.

Huguenots

French Protestants in the 16th and 17th centuries who faced severe persecution from the Catholic majority, leading many to flee to other countries.