Tradable Pollution Permits Are A(n)

question 72

Multiple Choice

Tradable pollution permits are a(n) :

• A) tax system for internalizing pollution costs to the market.
• B) subsidy system for charging consumers for the use of common property resources.
• C) system of voluntary negotiations between polluters and damaged parties.
• D) system of exchangeable licenses that enable the holder to pollute up to a specified amount during a given period.

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Definitions:

Straight Line

The shortest distance between any two points, or a line with a constant slope, in geometric terms.

Opportunity Costs

Opportunity costs represent the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Natural Disaster

A sudden and extreme event caused by natural processes of the Earth that can result in significant damage and loss.

Inward Shift

A decrease in the potential output of a good or service, often represented by a shift to the left of its supply or demand curve.