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All individuals are made better better off 4 a policy

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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 quantity. (3) A TEPS...
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