Asked by
Dominique Likus
on Oct 26, 2024
Verified
The government can intervene to achieve the socially optimal quantity of a common resource by using which approach(es) ? I.assigning property rights
II.imposing a tax on usage
III.granting a limited number of tradable permits to use the good
A) I only
B) II only
C) I and II only
D) I,II,and III
Tradable Permits
Environmental or regulatory allowances that can be bought and sold, often used in emissions trading schemes to control pollution or carbon emissions.
Property Rights
Legal rights to use, control, and derive benefits from any type of property, including real, personal, or intellectual property.
- Comprehend the function and methods of governmental interference in curbing the excessive utilization of shared resources.
- Identify various economic instruments and strategies, such as Pigouvian taxes, tradable permits, and property rights, to tackle externalities and ensure the optimal allocation of resources.
Verified Answer
TM
Learning Objectives
- Comprehend the function and methods of governmental interference in curbing the excessive utilization of shared resources.
- Identify various economic instruments and strategies, such as Pigouvian taxes, tradable permits, and property rights, to tackle externalities and ensure the optimal allocation of resources.
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