Why should a system of marketable pollution permits lead to less costly pollution abatement than a command-and-control system?
What will be an ideal response?
Even if both systems lead to the same pollution abatement, in the case of marketable permits the most expensive polluters can continue to pollute while those for whom cleanup is less costly can choose to clean up.
You might also like to view...
A decrease in taxes will have no effect on real GDP if
A) the tax decrease is offset by an increase in government spending. B) people look at changes in taxes only in the present. C) the Ricardian equivalence theorem holds. D) there is no crowding out.
The multiplier will be smaller, other things being equal: a. the smaller the fraction of each dollar earned that goes to taxes
b. the larger the MPC. c. the smaller the fraction of each dollar of disposable income that goes to saving. d. None of the above are true.
Suppose the Fed announces that it expects interest rates to fall in the next quarter. What happens to the demand for money today?
A) The precautionary demand for money goes up. B) The speculative demand for money goes up. C) The transaction demand for money goes down. D) The speculative demand for money goes down.
the 1990s the misery index was
A. between 5 and 12. B. between 12 and 19. C. between 19 and 26. D. between 26 and 33. E. between 33 and 40.