In Some Cases,why Might Pollution Permits Be Better Than a Corrective

question 25

Multiple Choice

In some cases,why might pollution permits be better than a corrective tax

• A)Pollution permits allow for a market solution while a corrective tax does not.
• B)Pollution permits generate more revenue for the government than a corrective tax.
• C)Pollution permits are never preferred over a corrective tax.
• D)Pollution permits can have a maximum level of pollution set on them by the government.

---

Definitions:

Complement

In probability theory, the event consisting of all outcomes not in a given event, typically leading to a sum of probabilities equal to one.

Probability

The quantification of an event's likelihood to occur, represented as a number from 0 to 1.

Mutually Exclusive Events

Two events that cannot occur at the same time within the same experiment or observation.

Independent Events

Two or more events that have no influence on each other's occurrence, meaning the occurrence of one event does not affect the probability of the other.