Which of the Following Is TRUE of the Cap-And-Trade Program

question 244

Multiple Choice

Which of the following is TRUE of the cap-and-trade program in the United States?

• A) The state of California began a cap-and-trade program in 2013.
• B) The United States is a participant of the Kyoto Protocol that implemented the cap-and-trade program in 2005.
• C) All states in the U.S. have implemented a cap-and-trade program before the Kyoto Protocol in 2005.
• D) The state of Texas is currently the only state in the U.S. that has not implemented a cap-and-trade program.

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Definitions:

Positive Economic Profits

The situation in which a firm's total revenues exceed its total costs, including both explicit and implicit costs, signaling that the firm is doing better than the next best alternative.

Profit

The financial gain realized when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Monopolistically Competitive Firm

A company that operates in a market with many competitors, each offering products that are similar but not identical, allowing for some degree of market power.

Price Higher Than Marginal Cost

A situation where the selling price of a product is set above the marginal cost of production, often leading to increased profitability but potentially distorting market efficiency.