What Results Once Tradable Pollution Permits Have Been Allocated to Firms

question 168

Multiple Choice

What results once tradable pollution permits have been allocated to firms

• A)The government controls the price of permits.
• B)Firms that can reduce pollution only at high cost will be willing to pay the most for the pollution permits.
• C)The value of pollution-saving technology is always lower than the market value of a pollution permit.
• D)The total amount of pollution governed by the permit will always decrease.

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Definitions:

X-rays

Electromagnetic waves of high energy and very short wavelength, which can pass through many materials opaque to light.

Cathode Rays

Streams of electrons observed in vacuum tubes, leading to the discovery of electron properties and the development of electronic devices.

Arc

A luminous discharge of electricity through gas.

Voltage

The electric potential difference between two points, or the push that drives an electric current between those points.