Which of the following statements is false?
A. Under an emission tax, a tax is set and then the quantity of permissible pollution is determined.
B. Under both emission taxes and tradable pollution permits polluters must pay to pollute.
C. One possible approach to dealing with the problem of environmental negative externalities is a policy of tradable pollution permits, also known as cap and trade.
D. Under a tradable pollution permits system, a price of pollution is set and then the quantity of permissible pollution is determined based upon that price.
Answer: D
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If a firm increases its capital stock, real wages will likely ________ and the equilibrium quantity of labor will likely ________
A) decrease; decrease B) increase; increase C) decrease; increase D) increase; decrease
Because Don has health insurance, he is more likely to see the doctor when he has a cold. This is an example of
A) adverse selection. B) moral hazard. C) both moral hazard and adverse selection. D) private information.
How can compensating differentials explain differences in wages across jobs in different industries?
What will be an ideal response?
The Fed conducts an open-market sale of Treasury bills of $5 million. If the required reserve ratio is 0.20, what change in the money supply can be expected using the oversimplified money multiplier?
A. $25 million B. $5 million C. 0 D. ?$5 million E. ?$25 million