Using Tradable Allowances Instead of Quotas May Be a Better

question 3

Multiple Choice

Using tradable allowances instead of quotas may be a better solution to the provision of common resources because:

• A)tradable allowances allocate the good in the most efficient way,and quotas do not.
• B)tradable allowances ensure that the resource is allocated to those with the highest willingness to pay,while quotas do not.
• C)tradable allowances assign private property rights-and an incentive,as owners,to make sure that the common resource does not get overused,and quotas do not.
• D)All of these statements are true.

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Definitions:

Eunuchs

Castrated males, often assigned to serve in royal courts or as guardians of harems.

Castrati

Male singers who were castrated before puberty to preserve their high-pitched vocal range; prominent in 17th and 18th-century European classical music.

Lakota

A Native American tribe that is part of the Sioux group of tribes, known for their rich culture and history on the Great Plains of North America.

Transgenders

Individuals whose gender identity or gender expression differs from the sex they were assigned at birth.