What Is Cap and Trade Policy

question 23

Multiple Choice

What is cap and trade policy?

• A) Capacity agreements on the total weight of imports and exports for a given country.
• B) Credits traded across governments for overall emissions of pollutants compared to each nation's productivity and exports.
• C) A progressive heavy fine and remediation system for countries exceeding their agreed upon limits in overall emissions of pollutants.
• D) Governments set a limit on overall emissions of pollutants and then let the market determine how industry would respond.

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Definitions:

Service Business

A type of business that provides intangible products or services to customers.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a snapshot of its financial condition.

Revenue from Sales

Represents the income that a company generates from its business activities, typically from the sale of goods or services to customers.

Cost of Merchandise Sold

The direct costs tied to producing the goods that a company sells, thus a direct reflection of the cost of inventory sold.