When Dealing with a Pollution Problem,pollution Permits Are More Efficient

question 79

Multiple Choice

When dealing with a pollution problem,pollution permits are more efficient than taxes or command-and-control policies because

• A) firms with low costs of abatement can buy more permits.
• B) the government will generate more revenue from the sale of permits than through a pollution tax.
• C) firms with high costs of abatement can buy more permits.
• D) a pollution permit system will lead to all firms producing less pollution.

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Definitions:

Consideration

Something of value (such as money, services, or goods) that is exchanged between parties in a contract, making the agreement legally binding.

Offer and Acceptance

Fundamental principles in contract law where an offer proposal is made by one party and accepted by another, resulting in a legally binding agreement.

Agreement

A mutual understanding or arrangement between two or more parties outlining each party's rights and responsibilities.

Arbitration Ruling

An Arbitration Ruling is a binding decision made by an arbitrator or arbitration panel in a dispute resolution process outside of court.