One Advantage About an Emissions Permit System Is That

question 194

Multiple Choice

One advantage about an emissions permit system is that

• A)it creates a "license to pollute," sure to be popular with environmentalists.
• B)it reduces uncertainty about the quantity of pollution that will be emitted.
• C)it is a direct control system and avoids the inefficiencies of a market.
• D)permits can be handed out on the basis of need to protect firms from high costs.

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Definitions:

Less Liquid

Describes assets that cannot be easily converted to cash without significant loss in value, relative to more liquid assets.

Roundabout Trade

Trade activities that involve the importing and exporting of goods through intermediate destinations rather than directly between the primary source and final destination.

Double-Coincidence

The situation in a barter system where two parties each possess an item the other wants, enabling an exchange without the need for a medium of exchange like money.

Barter

Trading goods or services directly without the use of money as a medium of exchange.