Setting Emissions Standards for Each Industry, While Allowing Companies to Trade

question 43

Multiple Choice

Setting emissions standards for each industry, while allowing companies to trade so-called carbon credits, is an approach to environmental policy known as

• A)cap-and-trade.
• B)the green alternative.
• C)NIMBY.
• D)the Gore protocol.

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Definitions:

Average Operating Assets

The average value of the assets used in a business's operational activities over a period.

Increase In Liabilities

An upward adjustment in the obligations a company owes to external parties, which could be due to loans, accounts payable, or other financial commitments.

Reduction In Operating Assets

A decrease in the value or amount of assets used for generating revenue.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.