Multiple Choice
Which of answer best explains how the market for tradable allowances in pollution works?
A) Firms are given a particular dollar subsidy value to clean up pollution, and they can trade these subsidies between themselves if they fall below or surpass the limits.
B) Firms are taxed a particular percentage rate according to how much they pollute, and they can trade the pollutants to reduce the effective tax rates they pay.
C) Firms are required to stick to particular production levels, and if they go beyond these production levels, they are charged a percentage of their profits.
D) Firms are given a particular allowance amount of pollutants, and if they fall below or surpass these targets they can trade their available allowances with other firms.
Correct Answer:
Verified
Correct Answer:
Verified
Q137: Social surplus is consumer surplus:<br>A) minus producer
Q138: Which statement is correct under a market
Q139: Use the following to answer questions:<br>Figure: Dishwashing
Q140: Bees produce honey for beekeepers but also
Q141: Social surplus is consumer surplus plus producer
Q143: Which statement illustrates the concept of external
Q144: Make an argument that gun ownership creates
Q145: The external benefit of honey production is
Q146: A Pigouvian tax:<br>A) is levied on a
Q147: Which of the following statements is TRUE?<br>I.