A Government Program Where Permits Are Issued for a Maximum

question 89

Multiple Choice

A government program where permits are issued for a maximum allowable amount of pollution and those permits can be bought and sold is called:

• A) a corrective tax.
• B) a corrective subsidy.
• C) cap and trade.
• D) nontradable pollution permits.

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Definitions:

Submission Agreement

A contract which provides that a specific dispute will be resolved in arbitration.

ADR Techniques

Alternative Dispute Resolution methods, including mediation, arbitration, and negotiation, used to resolve conflicts outside the traditional court system.

Conciliation

A process in which a neutral third party assists disputing parties to reach a mutually agreeable solution.

Arbitration

A process where a dispute is resolved by an impartial third party whose decision the involved parties agree to accept.