The Main Advantage of Using Market-Based Schemes for Reducing Pollution

question 89

Multiple Choice

The main advantage of using market-based schemes for reducing pollution is that they

• A)lead to greater fairness in the distribution of resources.
• B)improve the moral fibre of producers and consumers.
• C)lead to a more efficient use of scarce resources.
• D)maximize the difference between marginal cost and marginal benefit.
• E)minimize the difference between total cost and total benefit.

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Definitions:

Lean Against

A strategy used in financial markets to resist market trends by trading counter to the current direction.

National Saving

The total amount of savings generated within a country, equal to the sum of private and public savings.

Means-tested Programs

Government assistance programs where eligibility is based on the recipient's income or resources.

Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period at various price levels.