Compared to taxing pollution, an advantage of auctioning pollution permits is that:
A. it allows the public to directly reduce pollution by purchasing permits.
B. it ensures that all firms reduce pollution by the same amount.
C. the largest reductions in pollution are made by the firms that can do so the most cheaply.
D. auctioning permits raises revenue for the government.
Answer: A
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Increases in worker productivity usually reflect
A. growth of labor unions. B. management that pushes workers to work longer and harder. C. elimination of unemployment benefit programs. D. increased education and improved equipment.