Answer the following statements true (T) or false (F)

1. In a well-functioning "cap-and-trade system" for pollution rights, society benefits because pollution will be brought down to insignificant levels.
2. In a well-functioning cap-and-trade system for pollution rights, the right to pollute will go to those who are able to acquire the largest net benefit from using the scarce resource "clean air".
3. Asymmetric information occurs when the two parties in a market transaction do not have the same amount of information regarding the product or process involved in the transaction.
4. The licensing and regulation of financial advisers is one way by which the government tries to deal with the problem of inadequate information that financial firms about their customers.

1. FALSE
2. TRUE
3. TRUE
4. FALSE