Asked by
McKenna Olson
on Dec 05, 2024
Verified
If policy makers provide only enough tradable permits to provide efficient use of a common resource,only those who _____ will use the resource.
A) gain the most
B) initially obtain the permit
C) have the largest market share
D) have monopoly power
Tradable Permits
Government-issued rights or allowances that permit the holder to emit a certain amount of a substance; can be bought, sold, or traded.
Common Resource
A resource like air or water that is not owned by anyone, but is available for use by everyone, often leading to overuse and depletion.
- Recognize different economic tools and policies (e.g., Pigouvian taxes, tradable permits, property rights) to address externalities and achieve efficient resource allocation.
Verified Answer
SR
Learning Objectives
- Recognize different economic tools and policies (e.g., Pigouvian taxes, tradable permits, property rights) to address externalities and achieve efficient resource allocation.