Decide whether each of the following statements is true or false and provide a brief justification to your answer. (Note: No mark will be given to true/ false answers without any justification. Provide up to two sentences of justification.)

a) It is always at the best interest of the society to have zero tolerance policy on pollution. (5 points)

b) When facing multiple distortions in the market, it is better to correct at least some distortions than doing nothing. (5 points)

c) To measure consumers' welfare, compensating variation is a better measure than consumer surplus because the former does not depend on the assumption of constant marginal utility of income. (5 points)

d) Pigouvian tax is a way to internalize the externality. (5 points)

e) The Coasian approach does not depend on which side the property right is assigned to. (5 points)