Using tradable allowances instead of quotas may be a better solution to the provision of common resources because:
A)tradable allowances allocate the good in the most efficient way,and quotas do not.
B)tradable allowances ensure that the resource is allocated to those with the highest willingness to pay,while quotas do not.
C)tradable allowances assign private property rights-and an incentive,as owners,to make sure that the common resource does not get overused,and quotas do not.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

Tradable allowances allocate the common resource efficiently, ensuring that it is allocated to those with the highest willingness to pay, while also assigning private property rights and an incentive to prevent overuse. Therefore, all of these statements are true.

Using Tradable Allowances Instead of Quotas May Be a Better