(Last Word) in a Cap-And-Trade Program

question 180

Multiple Choice

(Last Word) In a cap-and-trade program,

• A) government fixes the price of pollution rights and firms choose how many permits to purchase.
• B) government fixes the maximum amount of a pollutant that firms can discharge and issues permits that firms can buy from and sell to each other.
• C) each firm is provided a fixed number of permits for a particular pollutant and no individual firm is allowed to acquire additional permits.
• D) firms can emit whatever type of pollutant they want, so long as the total tonnage does not exceed a government-established quantity.

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Definitions:

Periodically Recorded

Financial transactions or events that are recorded at regular intervals, such as monthly, quarterly, or annually.

Bank Credit Cards

Financial instruments issued by banks that allow cardholders to borrow funds with which to pay for goods and services, subject to the agreement that the funds will be repaid.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.

Credit Card Sales

Transactions in which goods or services are purchased using a credit card, immediate revenue for the seller, albeit often with processing fees deducted by the credit card processor.