The Advantage to Selling Pollution Permits Rather Than Using a Fixed

question 49

Multiple Choice

The advantage to selling pollution permits rather than using a fixed percent reduction for all firms is

• A)government raises additional revenue.
• B)reductions in pollution are accomplished by those firms that can do so at least cost.
• C)enforcement costs are eliminated.
• D)pollution is driven to zero.

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Definitions:

Praxis

The process by which a theory, lesson, or skill is enacted or practiced, particularly in a real-world context.

Deliberate System

A cognitive process involving conscious, controlled, and thoughtful consideration and decision-making.

Automatic System

Refers to cognitive processes that occur with little or no conscious effort, responsible for quick and intuitive decisions.

Duplex Mind

The concept that the human mind operates through two systems: one that is fast, automatic, and emotional, and another that is slow, deliberate, and logical.