Which Statement Is TRUE

question 125

Multiple Choice

Which statement is TRUE?

• A) Mandating that every firm emit no more than X amount of pollutants is the most efficient method of reducing pollution.
• B) A system of tradable allowances increases pollution because firms can pay for the right to pollute.
• C) To maximize social surplus, the burden of reducing pollution should be allowed to vary by industry.
• D) If the EPA cares about the sum of consumer and producer surplus, they should ignore the impact of pollution reduction on the profitability of firms.

---

Definitions:

Important Characteristics

Essential or significant features that distinguish an object, individual, or concept.

Trickle-down Theory

A social and economic idea suggesting that benefits for the wealthy or innovations in high fashion, for example, will eventually pass down to the less wealthy.

Fashion Acceptance Cycle

The process by which new styles and trends are introduced, accepted, and eventually declined by the public, influencing the dynamics of the fashion industry.

Fashion Classic

An item of clothing or accessory that remains stylish and universally accepted over an extended period, transcending short-lived fashion trends.