In Many Cases Selling Pollution Permits Is a Better Method

question 515

Multiple Choice

In many cases selling pollution permits is a better method for reducing pollution than imposing a corrective tax because

• A) it is hard to estimate the market demand curve and thus charge the "right" corrective tax.
• B) selling pollution permits create a net increase in pollution.
• C) Corrective taxes distort incentives.
• D) Corrective taxes provide greater flexibility to firms that can reduce pollution at a low cost.

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Definitions:

Low Wage Employees

Individuals employed in positions that pay less than the average wage for all workers.

Human Resources Function

The department within an organization responsible for managing recruitment, employment, training, and well-being of employees.

Labour Relations

Refers to the system of interactions between workers and management, or the relationships between employees and their employers, including negotiations, collective bargaining, and conflict resolution.

Unilateral Changes

Adjustments to policies, contracts, or conditions made by one party without consultation or agreement from the other party, often in employment or legal contexts.