Tradable Allowances May Be a Better Solution to Common-Resource Problems

question 72

Multiple Choice

Tradable allowances may be a better solution to common-resource problems than quotas because tradable allowances:

• A)allocate the good without government intervention.
• B)ensure that the resource is allocated to those with the highest willingness to pay, while quotas do not.
• C)are more equitable than quotas.
• D)allow the government to set a specific amount of the good to be consumed, while quotas do not.

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Definitions:

Disordered Behaviors

Actions or patterns of actions that are abnormal, dysfunctional, or symptomatic of a mental disorder.

Self-Fulfilling Prophecies

Expectations about a situation or individual that lead to behaviors which cause those expectations to come true.

Enrichment

The process of improving the quality or value of something, often related to job roles by adding more meaningful tasks and duties.

Incumbents

Individuals currently holding a specified position or office, especially political positions, who often have a competitive advantage in elections due to their existing role.