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.

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Definitions:

GDP

The Gross Domestic Product serves as a gauge for a country's economic output, encapsulating the aggregate value of goods and services generated within a set period.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness of the world's economies.

Free Traders

Individuals or entities advocating for minimal restrictions on international trade, believing it enhances economic efficiency and benefits all countries involved.

Merchandise Trade Imbalance

A situation where the import and export of goods in a country do not balance, resulting in either a trade surplus or deficit.