Question
Why do economists generally prefer market-based
instruments (like taxes or permits) over Command-and-Control (CAC) regulations (like uniform standards) for pollution abatement, especially in cases where firms have heterogeneous Marginal Abatement Costs (MAC)?Solution
Solution: Market instruments (taxes or permits) enforce the equi-marginal principle. Firms with low Marginal Abatement Costs (MAC) will abate more pollution (either to avoid the tax or to sell permits), and firms with high MAC will abate less (either paying the tax or buying permits). This trading/optimization process ensures that the total abatement burden is efficiently shared, achieving the desired environmental outcome at the minimum possible aggregate cost to society. CAC uniform standards typically violate this principle.
From the given options, select the word which cannot be formed using the letter of the word
‘PARENTHOOD’.
In a competition, five players, G, H, I, J, and K, scored different points. G scored more than I but less than K. H scored less than I. J is not the hig...
Find which one of the given words cannot be made from the letters of the given word.
‘ FORWARD ’
...Six family members are sitting in a row. Ana is sitting towards immediate left of Ben and immediate right of Cen. Cen is sitting to immediate right of F...
Select the word which cannot be formed using the letters of the given word using the letters only once.
GYMNASTIC
Which among the following words cannot be formed using the letters of the given word only once?
CONSIDERATE
If it is possible to make a four letter meaningful word from 4th, 5th, 7th and 8th letters of the word ‘ R...
Find which one word cannot be formed from the given letters of the word.
‘ EVERLASTING ’
...Find which one of the given words cannot be made from the letters of the given word.
‘ DELIGHTFUL ’
...In the following question, select the word which can be formed using the letters of the given word 'DESCENT'.
