Which Pollution Control Approach Does the Least to Internalize External

question 1

Multiple Choice

Which pollution control approach does the least to internalize external costs? 

• A) regulation 
• B) tradable pollution rights 
• C) subsidies for beneficial actions 
• D) user fees

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Definitions:

Standard Deviation

A measure of the dispersion or spread of a set of data points from their mean, indicating the variability within the dataset.

Budget Line

A diagram showing all imaginable combinations of two products that can be bought given a fixed budget at unchanged price points.

Expected Rate

The forecasted or anticipated rate of return on an investment or the future rate of interest on a loan.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values around the mean.