1. What is the "precautionary principle? How do the FDA and EPA differ with respect to its use?
2. How does a pollution cap resemble a pollution tax? Whats the difference between them?
3. Under what circumstances is permit trading a necessary part of "cap-and-trade," and under whatcircumstances can a policy have "cap-and-no-trade"?
4. What is the difference between an economic cost and an economic transfer, and how is this relevant in incentive-based environmental policies?