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Which of the following statements is correct? a. The use of pollution permits and corrective taxes reduce the cost of environmental protection. b. If the government chooses to distribute the tradable permits, the permits will eventually end up in the hands of the firms who value them most. c. Both statements in a and c are correct. d. It is more economically efficient in the market for pollution for the government to distribute the tradable permits than to auction them off.
Answers: 2
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Which of the following statements is correct? a. The use of pollution permits and corrective taxes r...
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