A Cap and Trade Program Is Efficient Because the Cap

question 31

Multiple Choice

A cap and trade program is efficient because the cap protects the environment while:

• A) generating substantial revenues for the government.
• B) keeping compliance and administration costs relatively low.
• C) while requiring the same response by each polluter.
• D) none of above

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Definitions:

Uncertainty

The condition of having limited knowledge about an event, outcome, or the future, making it difficult to predict accurately.

Power and Authority

Relates to the capacity of a person or organization to direct or influence the behavior of others or the course of events.

Informal Code

Unwritten rules or norms that guide behavior within a group or organization, often shaping the culture and interactions more subtly than formal policies.

Silence

The absence of expressed opinions, responses, or noises, which can be a powerful communication tool or a form of non-participation.