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:

Quadrants

The four sections of the Cartesian plane, divided by the x and y axes, used to classify the position of points.

Assume

To accept something to be true without verification or proof, often used in the context of mathematical proofs and hypotheses.

Right Triangle

A triangle that has one angle measuring 90 degrees.

Vertices

The corners or intersection points of geometric shapes where two or more lines, edges, or curves meet.