Which of the Following Is an Advantage of Tradable Pollution

question 78

Multiple Choice

Which of the following is an advantage of tradable pollution permits?

• A)Each firm is allowed to pollute exactly the same amount.
• B)Revenue from the sale of permits is greater than revenue from a corrective tax.
• C)The initial allocation of permits to firms does not affect the efficiency of the market.
• D)Firms will engage in joint research efforts to reduce pollution.

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Definitions:

Informal Decision Making

A process of making choices or reaching conclusions without formal structures, procedures, or adherence to official policy.

Rule

An established guide or principle governing conduct or procedure within a particular area of activity.

Evidence

Information presented in legal proceedings such as documents, witness testimony, or physical objects, used to establish facts and influence the decision of the court.

Preliminary Injunction

A court order issued early in a lawsuit that prohibits the parties from taking a specific action until a final decision is made.