Which of the Following Is Not a Characteristic of Pollution

question 165

Multiple Choice

Which of the following is not a characteristic of pollution permits?

• A)Prices are set by supply and demand.
• B)Allowing firms to trade their permits reduces the total quantity of pollution beyond the initial allocation.
• C)Real-world markets for pollution permits include sulfur dioxide and carbon.
• D)Firms for whom pollution reduction is very expensive are willing to pay more for permits than firms for whom pollution reduction is less expensive.

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Definitions:

Lump Payment

A single large payment made for a particular item or service, rather than several smaller installments.

Rate Of Return

The profit or deficit experienced on an investment throughout a designated period, shown as a percentage of the original investment amount.

Building Lot

A parcel of land designated for constructing a building or set of buildings.

Equivalent Payment

A payment amount that, when adjusted for interest and time, is equal in value to a different payment amount over a different time period.