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Explain how a market for pollutant emission allowances can induce firms to reduce the amount of emissions.
Standard Deviation
A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.
Defined Contribution Plan
A retirement plan where the employer, employee, or both contribute to an individual's account, and the retirement benefits depend on the account's investment performance.
Risk-free Return
The theoretical return on an investment with zero risk of financial loss, often represented by the yield on government securities.
Defined Contribution Plan
A retirement plan where both the employee and employer contribute to an account, with the final benefit dependent on account performance.
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