Marketable pollution rights _____.
a. make producers pay for polluting
b. are inherently wrong
c. give producers incentive to internalize external costs
d. do nothing to reduce pollution in the long run
Question 2
Phantom capital gains occur when _____.
a. an asset increases in real terms, but not in nominal terms
b. an asset is constant in real terms, but increases in nominal terms
c. an asset decreases in real terms and decreases in nominal terms
d. an asset is purchased to be used upon an individual's death
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