Environmental Economics and Trade Policies Quiz

To impose taxes on goods

To address markets for goods with positive consumption externalities

To address markets for goods with negative production externalities (correct)

To address markets for goods with positive production externalities

Foreign trade should not be used as a way to avoid domestic regulations.

Trade between countries can reduce the likelihood that they go to war with each other.

It may be challenging to determine whether another country is selling goods cheaply because it is trying to undermine an industry or if it is just more efficient at producing the good.

Industries with government protection may develop to be inefficient and dependent on government protection. (correct)

A non-binding price floor.

A tax on sellers.

A tax on buyers.

A binding price floor. (correct)