Under the European System of Carbon Emissions Caps

question 83

Multiple Choice

Under the European system of carbon emissions caps:

• A) all industries can pollute an unspeci?ed quantity if they pay a one-time fee.
• B) industries with a surplus of permits trade with those that have a shortage.
• C) polluting industries have an incentive to invest in pollution-generating technology.
• D) the marginal private costs of pollution for polluting ?rms are reduced.

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Definitions:

Operating Segment

A component of a company that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is available.

Reportable Segment

A component of an enterprise that is distinguished by business activities, geographical areas, or products and services, requiring separate financial disclosure under accounting standards.

Revenue

The total income generated by a company from its normal business operations, before any expenses are deducted.