Once Tradeable Pollution Permits Have Been Allocated to Firms

question 177

Multiple Choice

Once tradeable pollution permits have been allocated to firms:

• A)the government controls the price of permits
• B)firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits
• C)the value of pollution saving technology is always lower than the market value of a pollution permit
• D)the total amount of pollution governed by the permit will always decrease

Distinguish between GDP, GNP, and other economic indicators and their significance.

Understand the Human Development Index (HDI) and its components.

Identify measures of economic well-being and inequality, such as the Gini coefficient.

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