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:

Sleepwalk

The act of walking or performing complex behaviors while in a state of sleep, also known as somnambulism.

10-year-old Child

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Stage 4 Sleep

A stage of deep sleep characterized by delta waves, low physiological activity, and is considered the most restorative phase of sleep.

N3 Sleep

The third stage of non-REM sleep, characterized by deep sleep and the presence of delta waves in brain activity, crucial for restorative sleep.