Tradable Allowances May Be a Better Solution to Common-Resource Problems

Multiple Choice

Tradable allowances may be a better solution to common-resource problems than quotas because tradable allowances:

A) allocate the good without government intervention.
B) ensure that the resource is allocated to those with the highest willingness to pay, while quotas do not.
C) are more equitable than quotas.
D) allow the government to set a specific amount of the good to be consumed, while quotas do not.