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True or False 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

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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.

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