CoolU has solved its smoking problem by allocating each student 5 smoking permits a day,and allowing trading.This is an example of
A)marketable permits.
B)emission charges.
C)the Coase theorem.
D)a pollution tax.
E)a voucher.

Question

Quizplus · Accepted Answer

CoolU's system of allocating a limited number of smoking permits and allowing trading among students is a form of marketable permits. Each permit represents the right to smoke a certain amount, and students can buy and sell permits from each other based on their individual preferences and values. This creates a market-based solution to the smoking problem, where the total amount of smoking is limited by the number of permits available, but individual students have the flexibility to use their permits as they see fit.

CoolU Has Solved Its Smoking Problem by Allocating Each Student