In a Cap-And-Trade Program

question 59

Multiple Choice

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:

Merit System Appointee

A person appointed to a position based on their abilities and qualifications rather than political affiliations or other non-merit factors.

Civil Service Employee

An individual who works for a government agency or department, often under a merit-based system as opposed to being appointed or elected.

Privatization

The process of transferring ownership of a business, enterprise, agency, or public service from the government to private individuals or organizations.

Federal Workers

Employees of the federal government who work in various departments and agencies, contributing to the administration and implementation of government policies.