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In Some Cases, Pollution Permits May Be Better Than a Pigovian

Question 9

Multiple Choice

In some cases, pollution permits may be better than a Pigovian tax because:


A) Pigovian taxes reduce pollution by a greater amount than pollution permits
B) pollution permits generate more revenue for the government than a Pigovian tax
C) pollution is difficult to measure
D) the government has more explicit control over the quantity of pollution created with permits

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