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Unformatted text preview: vidual is made better-off and no individual is made worse-off.
D. all individuals are made better better-off.
4. A policy which passes the potential Pareto improvement test
A. has a positive net social benefit.
B. creates social surplus.
C. may nonetheless create losers.
D. All of the above.
5. Compensation might not be made to those who lose from a policy because
A. compensation is a costly transaction.
B. a deliberate reassignment of property rights may be an implicit part of the policy.
C. the losses to the losers are usually too small to be of concern.
D. Both A and B.
6. The carbon tax in BC is currently
A. $15 per tonne of CO2-equivalent.
B. $15 per tonne of carbon.
C. $10 per tonne of CO2-equivalent.
D. $10 per tonne of carbon. 28 7. Which of the following four statements are true?
(1) In a tradable emissions permit system (TEPS), government sets the quantity of
emissions, and the market sets the price.
(2) Under a carbon tax, government sets the price of emissions, and the market sets the
(3) A TEPS...
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- Spring '14