With Tradable Permits, the Total Amount of Pollution in the Economy

question 43

Multiple Choice

With tradable permits, the total amount of pollution in the economy is

• A)the total amount of permits issued, and is controlled.
• B)less than the total amount of permits issued, and is controlled.
• C)more than the total amount of permits issued, and is not controlled.
• D)the total amount of permits issued but is not controlled.
• E)zero.

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Definitions:

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a specified time.

Tariff

A tax imposed on imported goods and services to raise their price, thereby protecting domestic industries from foreign competition.

Liberalize International Trade

The process of reducing tariffs, quotas, and other barriers to allow for the free flow of goods and services across national borders.

Foreign Trade Competition

The competition that domestic companies face from abroad, influencing local markets, pricing, and product offerings.