Suppose that the government decides to issue tradable permits for a certain form of pollution. a. Does

Question:

Suppose that the government decides to issue tradable permits for a certain form of pollution.

a. Does it matter for economic efficiency whether the government distributes or auctions the permits? Why or why not?

b. If the government chooses to distribute the permits, does the allocation of permits among firms matter for efficiency? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles of economics

ISBN: 978-0538453042

6th Edition

Authors: N. Gregory Mankiw

Question Posted: Dec 14, 2012 06:55 AM

See More Questions

Suppose that the government decides to guarantee an above-market price for a good by buying up any surplus at that above-market price. Using a conventional supply-demand diagram, illustrate the...
Suppose that the government decides to reduce taxes. In the model used in this chapter, determine the effects this has on aggregate output, consumption, employment, and the real wage, and explain...
Suppose that the government pumps an extra $1 billion into the economy. Assume that each business and individual saves 25% of its income and spends the rest, so of the initial $1 billion, 75% is...
lim 2sin 71-00 2019 n n+1 + cos 2019 n n+1 is equal to (Answer should be integer)
Show that the range spaces and null spaces of powers of linear maps t: V V form descending V R(t) R(t2) . . . and ascending {} N (t) N (t2) . . . chains. Also show that if k is such that R(tk)...
Baghdad Arts, Inc., a leading producer of fine cast silver jewelry, is considering the purchase of new casting equipment that will allow it to expand the product line into award plaques. The proposed...
Create a domain dictionary for an ATM system.
There is a looming crisis in universities and colleges across North America. In most places enrollments are increasing requiring more instructors. However, there are not enough PhDs to fill the...
Divide the following two complex numbers. 4-31 3+21
An Evaluation of the Dilemma at Benevento Foods: Understanding Cause and Effect and Recommendations for Improvement For this Assignment, you will continue to evaluate the same scenario from the...
Figure shows that for any given demand curve for the right to pollute, the government can achieve the same outcome either by setting a price with a corrective tax or by setting a quantity with...
There are three industrial firms in Happy Valley. The government wants to reduce pollution to 120 units, so it gives each firm 40 tradable pollution permits. a. Who sells permits and how many do they...
Determine whether the graph shown is connected or disconnected. A
All the students of a university are assigned ID numbers. The ID number consists of the first three letters of a students last name, followed by four numbers. How many possible different ID numbers...
Mr. Doe wants to send two employees in his company on a business trip. He has five employees in the company. In how many different ways can he organize the trip?
Suppose you toss a coin three times. What is the probability of tossing three heads in a row? What is the probability of tossing three tails in a row? What is the probability of tossing either three...
A stock broker owns five suits and 12 ties. Assuming that all the suits and ties match, determine how many different outfits (combinations) the stock broker can wear.
The Whiter Smile Company is about to begin selling a new toothpaste. Company planners know that the probability of the new product being profitable is 10 %. They also know from previous market...
Simple try-with-resources: Implement a program named WriteToFileEx that writes and displays what this chapters WriteToFile program writes and displays. But do not use a separate write method. Put the...
Describe basic managerial approaches to implementing controls and how these are implemented.
Write a library of static methods that implements the hyperbolic functions based on the definitions $\sinh (x)=\left(e^{x}-e^{-x}ight) / 2$ and $\cosh (x)=\left(e^{x}+e^{-x}ight) / 2$, with...
Its an important tradition in the Santos family that they eat the same meal at their favorite restaurant every Sunday. By contrast, the Chen family spends exactly $50 for their Sunday meal at...
The U.S. Department of Agriculture (USDA) has been concerned that Americans arent eating enough fruits and vegetables, and theyve considered coupons and other subsidies to encourage peopleespecially...
On average, old cars pollute more than newer cars. Therefore, every few years, a politician proposes a cash for clunkers program: The government offers to buy up and destroy old, high-polluting cars....
You will modify the add method in the LinkedBag class. The add method is the only thing you should modify in LinkedBag. Add a second parameter to the method header that will be a boolean variable:...
Generate Random Decals is primitive please fix that as well As a license plate number, integers are to be used. Positive numbers add a car, negative numbers remove a car, zero stops the...
Describe the competitive positions in the drone industry and assess the opportunities for at least three positions in the industry.

Suppose that the government decides to issue tradable permits for a certain form of pollution. a. Does

Question:

Step by Step Answer:

a In terms of economic efficiency in the market for pollution it does not matter if the go...View the full answer

Principles of economics

Students also viewed these Economics questions