When Tradable Allowances Are Used to Correct a Negative Externality

question 89

Multiple Choice

When tradable allowances are used to correct a negative externality in a market, the outcome:

• A)limits the quantity bought and sold to the efficient level.
• B)maximizes surplus.
• C)is efficient.
• D)All of these are true.

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Definitions:

Narrow Ocean

A relatively thin and elongated body of oceanic water situated between more substantial land masses.

Narrow Ocean

Refers specifically to the relatively thinner and smaller expanses of ocean, often found between landmasses.

Narrow Sea

A relatively small and elongated body of seawater that lies between two landmasses, often acting as a natural border.

Volcanic Islands

Islands formed by volcanic processes above the sea level, often at hot spots or oceanic plate boundaries.