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Economists Generally Favor the Use of Tradable Emissions Allowances to Reduce

question 92

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Economists generally favor the use of tradable emissions allowances to reduce pollution. However, the use of these allowances has been criticized by some environmentalists. Which of the following describes this criticism?


Definitions:

Taxable Income

Taxable income is the portion of an individual's or corporation's income used to determine how much tax will be owed to the government.

Tax Revenues

The money obtained by governments as a result of taxation.

Borrowing

The act of obtaining or receiving something on loan with the promise or understanding of returning it or its equivalent.

Social Security Benefits

Payments made to eligible individuals, typically retirees or disabled workers, provided through a government system funded by payroll taxes.

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