The Difference Between a Corrective Tax and a Tradable Pollution

Multiple Choice

The difference between a corrective tax and a tradable pollution permit is that

A) a corrective tax sets the price of pollution and a permit sets the quantity of pollution.
B) a corrective tax creates a more efficient outcome than a permit.
C) a corrective tax sets the quantity of pollution and a permit sets the price of pollution.
D) a permit creates a more efficient outcome than a corrective tax.