en 10In some cases, pollution permits may be better than a Pigovian tax becauseedSelect one:out ofa. pollution permits allow for a market solution, while a Pigovian tax does notO b. pollution permits generate more revenue for the government than a pigovian taxc. pollution permits are never preferred over a Pigovian taxO d. the government can set a maximum level of pollution using permits on 7When externalities exist, buyers and sellersredSelect one:d out ofa. neglect the external effects of their actions and the market equilibrium is efficientb. do not neglect the external effects of their actions and the market equilibrium is efficientonc. neglect the external effects of their actions and the market equilibrium is not efficientO d. do not neglect the external effects of their actions and the market equilibrium is not efficienton 8A positive consumption externality will cause a market toredSelect one:d out ofa. produce less than is socially desirableO b. produce more than is socially desirableonc. produce more than is market optimalO d. produce less than is market optimalon 9If only a few people are affected by an externalityredSelect one:d out ofa. then it is likely that Pigovian taxes will provide the most efficient solution to the externalityO b. then it is likely that command and control regulation will provide the most efficient solution to the externalityonc. then it is more likely that a private solution to the inefficiency could occurd. then it is likely that a private solution will be very difficult to negotiate

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In some cases, pollution permits may be better than a Pigovian tax because Select one: a. pollution permits allow for a market solution, while a Pigovian tax does not b. pollution permits generate more revenue for the government than a pigovian tax c. pollution permits are never preferred over a Pigovian tax d. the government can set a maximum level of pollution using permits

In some cases, pollution permits may be better than a Pigovian tax because Select one: a. pollution permits allow for a market solution, while a Pigovian tax does not b. pollution permits generate more revenue for the government than a pigovian tax c. pollution permits are never preferred over a Pigovian tax d. the government can set a maximum level of pollution using permits

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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