Answer to Question #71852 in Microeconomics for daniel

Question

Tradable allowances are like quotas in that they both:
A.
limit the quantity bought and sold to the efficient level.
B.
maximize surplus.
C.
are efficient.
D.
All of these statements are true.

Answer 1

Tradable allowances are like quotas in that they both limit the quantity bought and sold to the efficient level.
So, the correct answer is A.