How does a cap-and-trade system:
a. force polluters to internalize an externality?
b. lower transactions costs?
c. give incentive to polluters to find new ways to reduce pollution?
d. make future pollution reductions easy to implement?
a. For every ton of pollution emitted, the polluter must buy a pollution permit or use one they already own and could otherwise sell.
b. Since permits are tradeable, the polluters are able to bargain in terms of who will reduce emissions.
c. New, lower-cost ways to reduce pollution will require fewer permits that need to be purchased.
d. The government can simply reduce the number of permits it prints.
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Which of the following is NOT a restriction the government imposes to keep potential entrants out of a market?
A) patents B) tariffs C) assistance with opening new firms D) copyrights
The example of segregated streetcars in the southern United States in the early twentieth century is one example of
a. racial discrimination by firms, despite government efforts to halt it. b. racial discrimination by firms with no government action either to halt it or to support it. c. government-mandated racial discrimination. d. a failure to find any discrimination where most would expect to find it.