Business, 06.04.2020 18:59 noreenhussain

Suppose a political candidate criticizes a government pollution permit policy that she says lets corporations buy and sell the right to pollute. She argues that our right to breathe and the future of our planet require real regulation instead of this type of government policy.
Which of the following describes why most economists would disagree with her statement?

a) Clean air is a fundamental right, and government regulation will allow too much pollution.
b) A free market in tradable pollution permits is typically more efficient than government regulation.
c) The environment is so important that it should be protected as much as possible, regardless of the cost.
d) A corrective tax would result in a more efficient outcome than either tradable permits or government regulation would.

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