Which of the Following Statements Is TRUE

question 54

Multiple Choice

Which of the following statements is TRUE?
I. The EPA's tradable allowances program for sulfur dioxide establishes property rights to pollute and helps reduce transaction costs by distributing allowances, maintaining databases, and monitoring emissions.
II. One criticism of tradable allowances is that they prohibit nonbusinesses and environmental groups from purchasing the allowances.
III. The tradable allowances for sulfur dioxide have performed poorly because electricity output has increased, causing a rise in sulfur dioxide levels.

• A) I only
• B) II and III only
• C) I, II, and III
• D) III only

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Definitions:

Horizontal Demand

Horizontal Demand describes a market condition where the demand for a product is exceedingly elastic, indicating that a slight change in price can lead to a significant change in the quantity demanded.

Xerox

A multinational corporation known for its photocopiers, printers, and digital document solutions, symbolizing photocopying.

IBM

International Business Machines Corporation, a multinational technology company known for its computer hardware, software, and IT services.

Microsoft

A global technology company known for its software products, including the Windows operating system and Office suite.