1. Which of the following policy tools is inefficient even when correctly administered? a. environmental standards b. emissions taxes c. tradable emissions permits d. Pigouvian taxes e. cap and trade programs 2. An efficient Pigouvian subsidy for a good is set equal to the good's a. external cost. b. marginal social benefit. c. marginal external cost. d. marginal external benefit. e. price at which MSC = MSB. 3. Which of the following is true in the case of a positive externality? a. MSC > MSB b. MPB>MSC c. MSB > MPB d. MPB>MSB e. MSC > MPC