Which of the following may be used in an attempt to correct market failure?

Rank the following goods from most elastic to least elastic: fruit, apples, Granny Smith apples

A) Fruit, apples, Granny Smith apples B) Apples, Granny Smith apples, fruit C) Granny Smith apples, apples, fruit D) The goods cannot be ranked by elasticity because it ultimately involves the problem of comparing apples to oranges.

A major problem with using a tradable emission allowances system to control pollution is

A) that it grants firms a license to pollute. B) the difficulty in determining the emissions target. C) that it does not eliminate pollution completely. D) it discourages firms from implementing cost-effective pollution control technology.