What results once tradable pollution permits have been allocated to firms?
a) The government controls the price of permits.
b) The total amount of pollution governed by the permit will always decrease.
c) The value of pollution-saving technology is always lower than the market value of a pollution permit.
d) Firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits.
Answer: d) Firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits.
You might also like to view...
The aspect of the Second Banking Crisis of the 1930s that distinguished it from the First Banking Crisis was that during the second crisis ___
a. the Federal Reserve finally decided to act as lender of last resort b. the stock market boom finally came to an end with the crash c. banks in all regions of the country failed d. President Roosevelt asked Congress to establish Federal deposit insurance
Which of the following would contribute to a positive trade balance for a country?
A) having tourists visit the country B) importing textiles C) having foreign residents buy the government bonds of the country D) importing financial services