If the Government Sells Certificates Giving the Owner Permission to Emit

question 46

Multiple Choice

If the government sells certificates giving the owner permission to emit a particular amount of pollution,and then allows these certificates to be bought and sold at a market price,then the government is using a market-based approach to pollution reduction called

• A) tradable pollution permits.
• B) command-and-control regulation.
• C) a carbon tax.
• D) mitigation.

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Definitions:

Total Revenue

The total income received by a firm from the sale of its goods or services before any costs or expenses are deducted.

Opportunity Cost

The value of the next best alternative that is forgone when making a decision.

Hardware Store

A retail business specializing in selling tools, building materials, and supplies for home improvements, repairs, and maintenance projects.

Building Uses

Pertains to the designated purposes or activities for which a building is designed, occupied, or intended to be used.