Which of the Following Is the Best Definition of a Cap-And-Trade

question 88

Multiple Choice

Which of the following is the best definition of a cap-and-trade policy for pollution?

• A) The government sets a cap on emissions.Firms are given permits by the government to emit pollutants and have the right to trade the permits with each other.
• B) Emissions of a pollutant are capped by the government at the current level,and the good being produced can still be traded in the market.
• C) Production of the good is capped by the government at the current level,but the good can still be traded in the market.
• D) The number of firms producing a good is capped by the government at the current level,but the good can still be traded in the market.
• E) Consumption of the good being produced is capped by the government at the current level,but the good can still be traded in the market.

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Definitions:

Positive

Characterized by the presence rather than the absence of distinguishing features, or constructive, optimistic, or confident in nature.

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A specialist who studies how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.

Physiological Psychology

A branch of psychology that studies the relationship between physiological processes and behaviors.