A Cap-And-Trade Policy Is an Efficient Method of Reducing Pollution

question 17

Multiple Choice

A cap-and-trade policy is an efficient method of reducing pollution because

• A) all firms will be forced to reduce pollution.
• B) only high-cost firms will be forced to reduce pollution.
• C) only low-cost firms will be forced to reduce pollution.
• D) those who can reduce pollution relatively more cheaply will have an incentive to buy permits.
• E) those who can reduce pollution relatively more cheaply will have an incentive to sell permits.

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Definitions:

Hemorrhage

Excessive or uncontrolled bleeding, which can occur internally within body cavities or externally through a natural opening or break in the skin.

Injured Tissue

Tissue that has been damaged due to injury or disease, leading to inflammation, pain, and often requiring regeneration or repair processes.

Regeneration

The process of renewal, restoration, and growth that makes genomes, cells, organisms, and ecosystems resilient to natural fluctuations or events that cause disturbance or damage.

Replacement

In biology, often refers to the substitution or restoration of cells, tissues, or organs.