A Tradable Permit System

question 10

Multiple Choice

A tradable permit system:

• A) requires that each firm reduce its pollution by the same amount.
• B) is difficult to implement because regulators do not know the marginal abatement costs of every company.
• C) achieves a given amount of pollution reduction at the least cost because firms with lowest marginal abatement costs do most of the reduction.
• D) increases pollution because the government gives firms permits that grant them the right to pollute.

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Definitions:

Traditional Women

A term usually referring to women who adhere to cultural, societal, or familial norms regarded as classic or conservative.

Self-Fulfilling Prophecy

A psychological phenomenon whereby an initially inaccurate expectation leads to actions that cause the expectation to come true.

Stereotypical Belief

A fixed, oversimplified, and often inaccurate idea about a particular type of person or thing.

Reverse Racism

A term often used to describe a misconception that affirmative action and similar policies meant to redress racial inequalities are a form of discrimination against white people.