Pollution Permit Policies Achieve an ________ Outcome Because ________

question 58

Multiple Choice

Pollution permit policies achieve an ________ outcome because ________.

• A)inefficient; wealthier firms can afford to purchase more permits.
• B)efficient; firms that have the lowest cost of reducing pollution will be able to pay more for each permit.
• C)inefficient; the supply of permits is set by the government, and so is perfectly inelastic.
• D)efficient; firms that have the highest cost of reducing pollution will have the greatest incentive to purchase permits.

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Definitions:

Reasonable Reliance

Reasonable reliance involves acting based on the expectation that the information or promises provided by another party are accurate and trustworthy.

Interest in Land

Legal rights or investments in real property, including ownership or the right to use the land under certain conditions.

Suretyship

A contractual arrangement where one party (the surety) guarantees the performance of a second party (the principal) to a third party (the obligee).

Statute of Frauds

is a legal principle that requires certain types of contracts to be written and signed in order to be enforceable.