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:

Herbert Spencer

A 19th-century English philosopher, biologist, anthropologist, sociologist, and prominent classical liberal political theorist known for his theory of social evolution.

Survival of the Fittest

A concept from evolutionary theory suggesting that only those organisms best adapted to their environment will survive and reproduce.

Karl Marx

A 19th-century philosopher, economist, and political theorist best known for his works on communism and critique of capitalism, co-authoring the "Communist Manifesto".

Émile Durkheim

A French sociologist best known for his foundational contributions to the field of sociology, including his theories on social cohesion, collective consciousness, and the social basis of religion.