Pollution Permits Are an Example of

question 71

Multiple Choice

Pollution permits are an example of

• A) government creation of public goods.
• B) a market approach to internalizing negative externalities.
• C) replacing a natural monopoly with a regulated monopoly.
• D) social regulation of the environment.
• E) offsetting collusion with a government-sponsored cartel.

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Definitions:

Total Revenue

The total receipts from sales of goods and services to customers; it is the unit price times the quantity of goods or services sold.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Price Elasticity

A metric evaluating the sensitivity of the amount of a good purchased to price fluctuations.

Demand Curve

A graph showing the relationship between the price of a product and the quantity of the product that consumers are willing to purchase.