Under a Tradable Pollution Permits System (Cap and Trade), Government

question 41

Multiple Choice

Under a tradable pollution permits system (cap and trade) , government _____________ the amount of pollution, ___________________ what the price to pollute will be.

• A)knows; and polluters immediately know
• B)doesn't know; and polluters don't immediately know
• C)knows; but polluters don't immediately know
• D)doesn't know; but polluters immediately know

---

Definitions:

Lot Size

The quantity of items that are produced, purchased, or moved in a single batch or order.

Cycle Inventory

Inventory that companies maintain to facilitate production in batches or cycles, as opposed to continuous production.

Quantity Discounts

Price reductions offered to customers purchasing in large volumes, incentivizing bulk purchases and often used to reduce inventory holding costs.

Cycle Inventory

Refers to the portion of inventory available or planned to be available in a warehouse or distribution center for fulfilling demand during a specific period, without needing to restock.