Describe the circumstances under which it would be better for the government to sell pollution permits than to levy a corrective tax
When the governmental authority (e.g., EPA) wants to restrict the quantity of emissions by a certain amount but does not know the demand curve for pollution, then it can auction off a certain number of pollution permits to achieve the desired result. Levying a corrective tax would involve guesswork as to the appropriate size of the tax.
You might also like to view...
The index of intra-industry trade is calculated as:
a. the minimum of imports and exports divided by the average of imports and exports. b. the maximum of imports and exports divided by the sum of imports and exports. c. imports divided by exports. d. imports plus exports divided by the average of imports and exports.
If South Korea has an absolute advantage in the production of an item, it must also have a comparative advantage in the production of that item.
Answer the following statement true (T) or false (F)