An Advantage of Tradable Permits Over Command and Control Policies

question 53

Multiple Choice

An advantage of tradable permits over command and control policies is that

• A) policymakers do not need to know abatement costs to produce an optimal outcome.
• B) policymakers determine the best abatement method.
• C) the marginal cost of abatement decreases as the environment becomes cleaner.
• D) the law of diminishing returns will cause abatement costs to decline.

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Definitions:

Behavior Change

The process of transforming or modifying one's actions or reactions to achieve a specific outcome, often related to health.

Countering

Substituting healthy responses for problem behaviors.

Grapes

A type of fruit grown in clusters on vines, known for their varied colors and sweetness.

Grape Juice

A beverage made by crushing and juicing grapes, often consumed for its flavor and health benefits.