Refer to Figure 3.4. The odds of Serena and Austin meeting randomly to view the sunset are

Which of the following statements is true of both pollution permits and corrective taxes?

a. Both policies internalize the externality of pollution. b. Both policies require firms to pay for their pollution. c. Both policies lead to the establishment of an equilibrium price of pollution. d. All of the above are correct.

______ are resources that are fully used up in the production process.

A. Materials B. Capital inputs C. Variable inputs D. Fixed inputs