Under the Emissions Trading Scheme, If Lots of Firms Introduce

question 26

Multiple Choice

Under the emissions trading scheme, if lots of firms introduce emissions curbing technologies, the demand for permits:

• A) might decrease and the firms' costs fall, while industry will expand, but the emissions will stay under the allowed cap.
• B) might increase and their price fall increasing the costs to firms.
• C) might decrease and their price rise leading to reduced output by the industry.
• D) might increase and their price rise, resulting in lower costs to the firms and increased output by the industry.

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Definitions:

United States

A country located in North America, known for its diverse population, significant cultural influence globally, and as a federal republic composed of 50 states.

Psychoneuroimmunology

An interdisciplinary field studying the interactions between psychological processes, the nervous system, and the immune system.

Stress

A physical, mental, or emotional factor that causes bodily or mental tension, stemming from any event or thought that makes one feel frustrated, angry, or nervous.

Immune System

A complex network of cells, tissues, and organs that work together to defend the body against attacks by foreign pathogens.