The EPA's CAP Program for SO₂ Gave Producers an Incentive

question 24

Multiple Choice

The EPA's CAP program for SO₂ gave producers an incentive to look for cheaper ways of lowering emissions because

• A) an emissions rate was mandated for firms and the penalties were high.
• B) increasing scarcity of permits drove their price up.
• C) offset trading offered large trade gains.
• D) emissions taxes were enforced with vigor.

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Definitions:

Probability Distribution

A function in statistics that identifies and quantifies all plausible values and their chances of occurrence for a random variable over a specific range.

Portfolio

A group of investments that comprise stocks, bonds, commodities, along with cash and cash equivalents such as mutual funds and exchange-traded funds (ETFs).

Coefficient of Correlation

A statistical measure that indicates the extent to which two variables change together.

Probability Distribution

A mathematical function outlining every potential value and associated probabilities a random variable may assume in a specified interval.