Which of the following statements is not correct?
a. Tradable pollution permits have an advantage over corrective taxes if the government is uncertain as to the optimal size of the tax necessary to reduce pollution to a specific level.
b. Both corrective taxes and tradable pollution permits provide market-based incentives for firms to reduce pollution.
c. Corrective taxes set the maximum quantity of pollution, whereas tradable pollution permits fix the price of pollution.
d. Both corrective taxes and tradable pollution permits reduce the cost of environmental protection and thus should increase the public's demand for a clean environment.
c
You might also like to view...
Each point on the demand curve reflects
A) all the wants of a given household. B) the highest price consumers are willing and able to pay for that particular unit of a good. C) the highest price sellers will accept for all units they are producing. D) the lowest-cost technology available to produce a good.
For a monopoly producing any output level greater than one, the average revenue curve:
A. is the same as the demand curve. B. lies about the demand curve. C. lies below the demand curve. D. can be negative.
The United States imports heavily in all of the following markets except
A. Coffee. B. Aluminum. C. Chromium. D. Aircraft.
If the Fed announces that it will reduce the growth rate of the money supply to 3% next year but people do not believe it, the Fed is said to
A. be an inflation nutter. B. lack credibility. C. engage in commitment. D. engage in destabilizing policy.