One Advantage About an Emissions Permit System Is That

question 194

Multiple Choice

One advantage about an emissions permit system is that

• A)it creates a "license to pollute," sure to be popular with environmentalists.
• B)it reduces uncertainty about the quantity of pollution that will be emitted.
• C)it is a direct control system and avoids the inefficiencies of a market.
• D)permits can be handed out on the basis of need to protect firms from high costs.

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Definitions:

ROI

Return on Investment; a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Operating Assets

Assets that are used for the day-to-day functioning of a business and can include cash, inventory, and buildings.

Direct Fixed Costs

Costs that are constant for a certain level of production or period but are directly tied to the production process.

Profit Center Manager

A manager responsible for overseeing a business segment or department that is judged on its ability to generate profit.