Individual Transferable Quotas (ITQs) Are Like a ________, Allowing ________

question 90

Multiple Choice

Individual transferable quotas (ITQs) are like a ________, allowing ________.

• A) subsidy; the internal benefit of fishing to be externalized
• B) corrective tax; fishermen a tax write-off for capital purchases
• C) pollution permit; fishermen the right to catch a limited number of fish
• D) cartel; fisherman to raise market prices by limiting competition

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Definitions:

Arbitrage Pricing Theory

A theory that designs to predict the price of assets by considering the relationship between a financial asset's returns and the macroeconomic factors that directly affect it.

Expected Return

The anticipated value or profit generated by an investment over a given period, factoring in all potential outcomes and their probabilities.

Systematic Risk

The danger that affects all investments within an entire market or a specific sector, commonly referred to as market risk or non-diversifiable risk.

Treasury Bills

Short-term government securities issued at a discount from the par value and pay no interest.