Question

"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."

Answer 1

The scenario described in the question is an example of marketable permits, where each student is allocated 5 smoking permits a day and allowed to trade them.

Step-by-step explanation:

The scenario described in the question is an example of marketable permits. Marketable permits, also known as cap-and-trade systems, involve allocating permits to individuals or firms that allow them to emit a certain quantity of pollution. In this case, CoolU has allocated each student 5 smoking permits a day, which they can trade with each other.