Marketable Pollution Permits Are a Method of Government Intervention to Prevent

question 21

Multiple Choice

Marketable pollution permits are a method of government intervention to prevent externalities whereby a government-issued permit allows a firm to pollute the environment

• A) by a specified amount
• B) not at all
• C) by an amount of the its choosing

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Definitions:

Just-noticeable Difference

The smallest difference in stimulus intensity that can be detected by a sensory system.

Sensory Adaptation

The method through which sensory detectors decrease their sensitivity to unchanging stimuli over a period.

Absolute Threshold

The minimum intensity of a stimulus that one can perceive, marking the boundary between non-detection and detection of a stimulus.

Weber's Law

A principle in psychology that states the smallest change in a stimulus, such as weight or brightness, that can be detected is a constant proportion of the stimulus level.