42. Tradable emissions permits: are a type of transaction cost. provide polluter

Question

42. Tradable emissions permits: are a type of transaction cost. provide polluters with an incentive to take the marginal social cost of pollution into account. give consumers an incentive to buy from environmental-friendly firms. are a form of subsidy. 43. In some countries, motorists pay an extra fee to travel on congested highways at peak times. This extra fee serves to: eliminate the externality internalize the externality. subsidize a positive externality. subsidize a technology spillover 44. Network externalities: do not involve methods of communications. exist when the value of a good to an individual is greater when a large number of other people also use that good the marginal benefit of a good to one individual does not depend on the number of other individuals who use it. can have a negative externality or a positive externality on a society. 45. The additional cost imposed on society as a whole by an additional unit of pollution is known as the comprehensive cost of pollution the incremental cost of pollution the optimal cost of pollution. O the marginal social cost of pollution.

Explanation / Answer

21 C

22 D

23 A

24 D

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