-If the Price of Marketable Permits Is Kept Very High

question 74

Multiple Choice

-If the price of marketable permits is kept very high, _____.​

• A)the quantity of pollution in the economy will increase
• B)a network externality will arise
• C)​firms will adopt more efficient pollution abatement equipment
• D)​environmental groups will start selling additional permits in the market
• E)​firms will have a greater incentive to pollute

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Definitions:

Token Economy

A form of behavior modification that involves rewarding desired behaviors with tokens that can later be exchanged for various rewards.

Operant Conditioning

A learning operation where the modification of behavior power is executed by providing bonuses or admonishments.

Systematic Desensitization

A behavioral therapy technique used to reduce phobias and anxieties through gradual exposure to the feared object or situation.

Behavior Modification

A therapy approach that focuses on changing undesirable behaviors through reinforcement techniques.