ace 210 midterm 2
- Created by: ENee97
- Created on: 28-10-18 20:38
Other questions in this quiz
2. which is false for tx v subsidy v deposit systems?
- the subsidy progra will give firs an incentive to innovate and find cheaper vinyl alternative.
- the sibsidywill not cause total vinyl reduction to be done CE
- in the long term (when firms can enter and exit their industries) the subsidy wil cause more vinyl to be used than the tax
3. for a gov with uncertainty about MAC curves who are trying to reduce dry cleaners pollution, what is true about using emission taxes?
- with the tax the giv will be uncertain about how much emission reduction will ensue
- with the tax the gov will be uncertain about what the marginal abatement cost will be that the dry cleaners end up bearing
- the gov should choose he tax if the MD curve slopes sharply upward
4. for tradable permits, which is false?
- because the equimarginal priniple is satisfied, the level of totl abatment induced by a TDP rogram will be efficient
- a tradable permit program provides firs with lower incentives to engagae in tch innocation than does an equivalent emission tax
- the market prce of the peermits will fall i more permits are given out
- the final allocation of clean up does not depends on the initial allocation of permits
5. for a gov with uncertainty about MAC curves who are trying to reduce dry cleaners pollution, what is true about using tradable permits?
- with the trdable permits the gov will be uncertin about what the MAC will be that they dry cleaners end up bearing
- with the trdable permits the gov will be uncertin about how much emissio reduction ill ensue
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