Total Emissions from Polluters Decreases in a CAP Program If

question 21

Multiple Choice

Total emissions from polluters decreases in a CAP program if

• A) the total number of permits decreases
• B) the marginal abatement cost of each polluter increases
• C) the price of permits decreases each year
• D) the CAP program expands to include additional types of pollutants

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Definitions:

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Payroll

The total amount of wages paid by a company to its employees for a set period of time.

Known Liability

Obligations or debts that have been incurred and are measurable with a high degree of certainty.

Vacation Benefits

Employee benefits that provide paid or unpaid time off from work for holidays, vacations, and personal time.