A pigovian tax on pollution ?

A. Sets the quantity of pollution
B. reduces the incentive for technological innovations to further reduce pollution
C. Sets the price of pollution
D. determines the demand for pollution rights.

An externality is ?

A. the benefit that accrues to the buyer in a market
B. the cost that accrues to the seller in a market
C. none of these answers
D. the compensation paid to a firm’s external consultants.
E. The uncompensated impact of one person’s actions on the well-being of a bystander

Tradable pollution permits ?

A. reduce the incentive for technological innovations to further reduce pollution.
B. set the price of pollution.
C. determine the demand for pollution rights.
D. Set the quantity of pollution

The government engages in a technology policy ?

A. by allocating tradable technology permits to high technology industry.
B. to internalize the positive externality associated with technology-enhancing industries.
C. to help stimulate private solution to the technology externality
D. to internalize the negative externality associated with industrial pollution

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