One Advantage of Allowing a Market for Pollution Permits to Control

question 167

Multiple Choice

One advantage of allowing a market for pollution permits to control the total amount of pollution released in an area is that:

• A)the government knows exactly how much each firm is allowed to pollute
• B)government revenue from the sale of permits is greater than revenue from a Pigovian tax
• C)the initial allocation of permits to firms does not affect the efficiency of the market
• D)firms will work together to eventually eliminate pollution

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Definitions:

Conflict Theory

Conflict theory is a social theory that views society as comprised of groups competing for limited resources, leading to conflicts and change.

Periphery Nations

Countries that are less developed than the semi-periphery and core countries, often exploited for their resources.

Power Structure

The organization of authority, influence, and power in a society or within specific institutions.

Theory of Deviance

An explanation about how societal norms and values play a role in defining and responding to behaviors that are seen as deviant.