Question

Pum a Am Om Diese Question Completion Status: QUESTION 14 Which of the following statements is TRUE? 1. The EPA's tradable allowances program for sulfur dioxide establishes property rights to pollute and helps reduce transaction costs by distributing allowances, maintaining databases, and monitoring emissions. II. One criticism of tradable allowances is that they prohibit nonbusinesses and environmental groups from purchasing the allowances. III. The tradable allowances for sulfur dioxide have performed poorly because electricity output has increased, causing a rise in sulfur dioxide levels. A. ll and Ill only B. I only C. I, II, and III D. ill only QUESTION 15 When the number of tradable allowances is set equal to the efficient market quantity: A. it is equivalent to a tax set equal to the level of the external cost. B. it is equivalent to a government regulation set equal to the efficient market quantity C. the price of the allowances will equal the social cost of pollution. D. the outcome will be more efficient than a tax on pollution, Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Answer 1

Q 14 - C

Ques 15 - When the number of tradable allowances is set equal to the efficient market quantity ?

Ans 15 - A. it is equivalent to a tax set equal to the level of the external cost.