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:

United States

A federal republic in North America composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Economic Sanctions

Financial and trade penalties applied by one or more countries against a targeted country, group, or individual to influence behavior or politics.

Nuclear Weapons

Explosive devices that derive their destructive power from nuclear reactions, either fission or a combination of fission and fusion.

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