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:

Independent Contractor

An individual or entity contracted to perform work for another entity as a non-employee, often with control over how the work is completed.

Physical Conduct

Actions of a person that involve bodily movement or control, which can be considered in legal contexts such as assault.

Undertaking

A commitment or assurance given by one party to another, often formalized in a legal context.

Principal-Agent

A relationship in which one entity (the agent) is authorized to perform actions or make decisions on behalf of another entity (the principal).