In Terms of Their Economic Effects, Which of the Following

question 439

Multiple Choice

In terms of their economic effects, which of the following policies toward pollution are most similar to one another?

• A)regulation and corrective taxes
• B)regulation and tradable pollution permits
• C)corrective taxes and tradable pollution permits
• D)All of these policies produce the same economic effects.

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Definitions:

Promissory Estoppel

The legal enforcement of an otherwise unenforceable contract due to a party’s detrimental reliance on the contract.

Negligent Misrepresentation

A false statement of material fact made by a party who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

Statute of Frauds

A legal doctrine requiring certain contracts to be in writing and signed by the parties involved to be enforceable.

Lifetime Employment

A practice, often associated with Japanese companies, where employees are hired with an understanding or expectation of employment security until retirement.