Market-based regulations tend to work best with pollutants that ... 1) Are non-uniformly mixed and local in effect 2) Have threshold effects 3) Are uniformly mixed and regional in effect 4) Cause non-point source pollution 5) Have non-linear and local effects 11. A preference for either taxes or permits to regulate pollution is dependent on the relative shape of what two curves? 1) Total cost of damage curve and total cost of pollution reduction curve 2) Marginal revenue of pollution control curve and marginal cost of damage curve 3) Marginal cost of pollution reduction curve and marginal cost of damage curve 4) Marginal benefit of pollution curve and marginal revenue of pollution curve 5) Marginal utility of pollution curve and marginal cost of regulation 12. Transferable permits are likely to result in less inefficiency, relative to a pollution tax, when ... 1) The marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable 2) The marginal costs of damages are steep and the marginal costs of pollution reduction are steep 3) The marginal costs of damages are relatively stable and the marginal costs of pollution reduction are relatively stable 4) The marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep 5) The marginal costs of damage are elastic and the marginal costs of pollution reduction are also elastic 13. A pollution tax would be preferable to a system of transferable permits when... 1) The marginal costs of damages are steep and the marginal costs of pollution reduction are relatively stable 2) The marginal costs of damages are steep and the marginal costs of pollution reduction are steep 3) The marginal costs of damages are relatively stable and the marginal costs of pollution reduction are relatively stable 4) The marginal costs of damages are relatively stable and the marginal costs of pollution reduction are steep 5) The marginal costs of damages are elastic and the marginal costs of pollution reduction are also elastic