Question

what is amarketable permit program?
a strategy granting property rights to polluting firms.
a policy specifying allowable pollution quantities.
a system where firms can buy and sell pollution permits.
a regulation that reduces international externalities.
a program imposing taxes on emitted pollution.
question 8
what is a negative externality?
the legal right to produce pollution in regulated amounts.
a situation where a third party suffers from a market transaction.
the additional cost firms pay for pollution permits.
a benefit gained by third parties outside a transaction.
the measurable costs incurred within a production process.
question 9
what is a pollution charge?
a program where firms trade pollution permits.
a command - and - control law regulating pollution.
the legal rights of firms to emit pollution.
a tax imposed on the quantity of pollution emitted.
the costs of implementing pollution control technology.

Explanation:

• Marketable permit program: A marketable permit program is a system where firms can buy and sell pollution permits. This allows firms that can reduce pollution at a lower cost to sell their excess permits to firms that find it more expensive to reduce pollution. It is a market - based approach to environmental regulation.
• Negative externality: A negative externality is a situation where a third party suffers from a market transaction. For example, if a factory pollutes the air, the people living near the factory (third - party) bear the cost of the pollution (health issues, reduced quality of life) even though they are not part of the factory's production - consumption transaction.
• Pollution charge: A pollution charge is a tax imposed on the quantity of pollution emitted. This creates an economic incentive for firms to reduce their pollution levels as they have to pay a cost (the tax) for each unit of pollution they emit.

Answer:

• Marketable permit program: A system where firms can buy and sell pollution permits.
• Negative externality: A situation where a third party suffers from a market transaction.
• Pollution charge: A tax imposed on the quantity of pollution emitted.