Requirements That State and Local Governments Comply with Federal Rules

question 15

True/False

Requirements that state and local governments comply with federal rules under threat of penalties or as a condition of receiving a federal grant are called mandates.

---

Definitions:

Marginal Abatement Cost

Represents the cost associated with eliminating an additional unit of a negative output, such as pollution.

Emissions Permit

A legal right granted by a government to emit a certain amount of pollutants into the atmosphere; often used in cap and trade programs.

Refundable Deposit

An amount of money given as security for an item that is intended to be returned, with the promise of repayment.

Marginal Private Cost

The change in a firm's total costs that comes from making one additional unit, considering only private costs without externalities.