True or False

1.A Pigovian tax set at the appropriate rate will always eliminate negative externality damages

2.An advantage of a telechnology standard in regulating pollution is that enforcement and monitoring costs tend to be relatively low.

3.A central lesson of economics is that the free market will automatically take care of environmental problems without government intervention

4.A negative externality is incorporated into the supply-and -demand model by an upward shift of the supply curve.

5.A positive externality is incorporated into the supply-and -demand model by a downward shift in the demand curve.

6.A revenue-neutral tax is one that equalizes the cost to consumers and producers.

7.With a system of tradable permits, the firms with the higher pollution reduction costs will buy the most permits.

8.Providing a subsidy can increase social welfare in the presence of a positive externality.

9.According to the International evidence, using taxes to raise the price of gasoline does not affect gasoline consumption, because gasoline is a necessity.

10.If the goal of pollution control policy is"emissions certainty",then a cap-and-trade system id preferable to a tax on the amount of the pollutant emitted.