Under a tradable pollution permits system (cap and trade), government _____________ the amount of pollution, ___________________ what the price to pollute will be.

A. knows; and polluters immediately know
B. doesn't know; and polluters don't immediately know
C. knows; but polluters don't immediately know
D. doesn't know; but polluters immediately know

Answer: C

Economics

You might also like to view...

Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for gasoline,

A) the demand curve shifted to the left resulting in a decrease in the equilibrium price. B) the demand curve shifted to the right resulting in an increase in the equilibrium price. C) the supply curve shifted to the left resulting in an increase in the equilibrium price. D) the supply curve shifted to the right resulting in an increase in the equilibrium price.

Economics

Conventional money demand functions tended to ________ money demand in the middle and late 1970s, and ________ velocity beginning in 1982

A) overpredict; overpredict B) overpredict; underpredict C) underpredict; overpredict D) underpredict; underpredict

Economics