Like Negative Externalities,tradable Permits Are Useful in Allocating Common Resources

question 48

Multiple Choice

Like negative externalities,tradable permits are useful in allocating common resources because:

• A) the depletion of common resources imposes a negative externality.
• B) the problem present in both is overconsumption.
• C) the socially optimal quantity is not the same as the individual consumers in either case.
• D) All of these statements are true.

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Definitions:

Activation Phase

A stage in the process of memory that involves the retrieval of information to use it actively.

Activation

The process of initiating or triggering a response or action, especially in the context of physiological or psychological functions.

Intensity

The degree of strength, force, or concentration of something, often used in contexts of light, sound, or emotions.

Motivation

The internal and external factors that stimulate desire and energy in people to be continually interested and committed to a job, role, or subject, or to make an effort to attain a goal.