Which of the Following Statements Is TRUE

question 72

Multiple Choice

Which of the following statements is TRUE?

• A) Mandating that every firm emit no more than X amount of pollutants is the most efficient method of reducing pollution.
• B) A system of tradeable allowances increases pollution because firms can pay for the right to pollute.
• C) To maximize social surplus, the burden of reducing pollution should be allowed to vary by industry.
• D) If the EPA cares about the sum of consumer and producer surplus, they should ignore the impact of pollution reduction on the profitability of firms.

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Definitions:

Marijuana

A psychoactive drug derived from the Cannabis plant, used for medical or recreational purposes, known for its effective properties.

MDMA

A psychoactive drug primarily used recreationally for its effects on mood, perception, and increased energy.

Liquid Form

Describes a substance that is in a state or phase of matter where it has a definite volume but adapts to the shape of its container.

Chemical Substances

Materials with a definite chemical composition, which can be elements or compounds, and are involved in chemical processes.