The Use of Chlorofluorocarbons in Refrigerators and Air Conditioners Is

question 202

Multiple Choice

The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth and protects humans from ultraviolet radiation.Output of this substance has been restricted by a licensing system where producers have to bid in the open market for licenses to produce them in specified quantities.This is an example of dealing with externalities by

• A)voluntary compliance.
• B)direct controls.
• C)taxes.
• D)cap-and-trade.

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Definitions:

Annual Interest Rate

The percentage rate charged on a loan or earned on an investment over the period of one year.

Debt-to-equity Ratio

This financial indicator reveals the relative amounts of debt and equity used by a company to support its asset base.

Issuing Bonds

The process by which a company or government borrows money from investors by selling bonds, a form of long-term debt where the issuer promises to pay back the principal along with interest.

Stock

An equity instrument representing ownership interest in a company, entitling the holder to a claim on the company's assets and earnings.