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.

Related Mcqs:

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
Tradable pollution permits ?
A. reduce the incentive for technological innovations to further reduce pollution.
B. set the price of pollution.
C. determine the demand for pollution rights.
D. Set the quantity of pollution
The property tax wealth tax inheritance tax and income taxes such as persona and corporate taxes are ?
A. indirect taxes
B. direct taxes
C. inelastic
D. value-added tax
Except for taxes to offset ______ taxes are ______?
A. imperfect competition popular
B. externalities , distortionary
C. inequality , a first best option
D. poor health, unnecessary
Which of the following statements regarding taxes is correct ?
A. Most economists believe that in the short run the greatest impact of a change in taxes is on aggregate supply, not aggregate demand
B. An increase in taxes shifts the aggregate demand curve to the right
C. A decrease in taxes shifts the aggregate supply curve to the left
D. A permanent change in taxes has a greater effect on aggregate demand than a temporary change in taxes.
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
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
Which of the following is true with regard to a tax on labor income? Taxes on labor income tend to encourage ?
A. the unscrupulous to enter the underground economy
B. the elderly to retire early.
C. all the things described in these answers.
D. second earners to stay home.
E. workers to work fewer hours
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
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