Transferable permits are likely to result in less inefficiency, relative to a pollution tax, when
a. The marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable
b. The marginal costs of damages are steep and the marginal costs of pollution reduction are steep
c. The marginal costs of damages are relatively stable and the marginal costs of pollution reduction are relatively stable
d. The marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep
e. The marginal costs of damage are elastic and the marginal costs of pollution reduction are also elastic
Ans: a. The marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable
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The difference between the exports and imports of goods in a country is referred to as the
A) balance of payments. B) balance of trade. C) balance of power. D) exchange rate.
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Indicate whether the statement is true or false