One Advantage of Pollution Permits Over Pollution Taxes Is

question 55

Multiple Choice

One advantage of pollution permits over pollution taxes is

• A) pollution permits allow firms to choose their profit-maximizing level of pollution while taxes do not.
• B) pollution permits generate more revenue for the government than do pollution taxes.
• C) the government can set a maximum level of pollution using pollution permits.
• D) none of the above

---

Definitions:

Necessaries

Goods or services that are essential for someone’s maintenance and welfare according to their status in life and their requirements at the time of contract.

Credit

The granting of money or something of value with the expectation of repayment, or the reputation for solvency and reliability that allows an entity to borrow.

Revenue Opportunities

Potential scenarios or strategies that can lead to increased income or profits for a business or organization.

Public Utility Corporation

A company that provides essential public services, such as water, electricity, and natural gas, regulated by government entities.