Tradable pollution permits ?

Related Mcqs:

1. Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?

   A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
   B. tradable pollution permits, Pigouvian taxes, command-and-control policies
   C. tradable pollution permits command-and-control policies, Pigovian taxes.
   D. command-and-control policies, tradable pollution permits, Pigovian taxes.
   E. They would all rank equally high because the same result can be obtained from any one of the policies

2. Which of the following is true regarding tradable pollution permits and Pigouvian taxes ?

   A. All of these answers are true
   B. Pigouvian taxes and tradable pollution permits create an efficient market for pollution.
   C. Tradable pollution permits efficiently reduce pollution only if they are initially distributed to the firms that can regulator pollution at the lowest cost.
   D. To set the quantity of pollution with tradable pollution permits, the regulator must know everything about the demand for pollution rights.
   E. Pigovian taxes are more likely to reduce pollution to a targeted amount than tradable pollution permits.

3. The relationship between the exchange rate and the prices of tradable goods is known as the ?

   A. purchasing power parity theory
   B. asset markets theory
   C. monetary theory
   D. balance of payments theory

4. Common market is an agreement between two or more countries. What this agreement permits ?

   A. Free movement of capital and labor
   B. Free movement of goods and services
   C. Both of them
   D. None of them

5. Air pollution from automobile exhausts, and water pollution steel plants are examples of ?

   A. external economies
   B. negative externalities
   C. internal spillover
   D. social distortion

6. 3M runs a Pollution a Prevention Pays program that has led to a substantial reduction in pollution and costs this would be an example of responding and costs. This would be an example of responding to which of the following ?

   A. Nader’s raiders
   B. The green movement
   C. Governmental regulation
   D. International competition

7. The most efficient pollution control system would ensure that ?

   A. the regulators decide how much each polluter should reduce its pollution.
   B. no pollution of the environment is tolerated
   C. each polluter reduces its pollution an equal amount
   D. the polluters with the lowest cost of reducing pollution reduce their pollution the greatest amount

8. A pigovian tax on pollution ?

   A. Sets the quantity of pollution
   B. reduces the incentive for technological innovations to further reduce pollution
   C. Sets the price of pollution
   D. determines the demand for pollution rights.

9. Which of the following is not considered a transaction cost incurred by parties in the process of contracting to eliminate a pollution externality ?

   A. costs incurred due to lawyers’ fees
   B. costs incurred to reduce the pollution
   C. costs incurred to enforce the agreement
   D. costs incurred due to a large number of parties affected by the externality
   E. All of these answers are considered transaction costs

10. Which of the following are potential solutions to the problem of air pollution?

    A. Grant right of the clean air to citizens so that firms must purchase the right to pollute
    B. Auctions off pollution permits.
    C. Regulate the amount of pollutants that firms can put in the air
    D. all of these answers