Once Tradable Pollution Permits Have Been Allocated to Firms

question 43

Multiple Choice

Once tradable pollution permits have been allocated to firms,

• A)the government controls the price of permits.
• B)firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits.
• C)the value of pollution-saving technology will be lower than the market value of a pollution permit.
• D)the Coase theorem is no longer applicable as a solution to reducing pollution.

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Definitions:

Diffusion of Responsibility

A phenomenon where individuals in a group are less likely to take action or feel accountable when the responsibility is perceived to be shared among all group members.

Dispositional Factors

Internal factors such as personality traits and temperament that influence an individual's behavior and attitudes.

Strain

Refers to physical or psychological stress that results from exposure to demands or pressures.

Adolescence-Limited Offenders

Individuals who engage in criminal or delinquent behavior primarily during their adolescent years, with such behavior diminishing as they enter adulthood.