Consider the Following Two Statements to Answer This Question: (1)

question 5

Multiple Choice

Consider the following two statements to answer this question: (1) The bubble policy allows a facility to measure its emissions as an average of all emission points from that facility.
(2) Netting was developed as a trading program to control emissions in PSD areas.

• A) (1) is true and (2) is false
• B) both (1) and (2) are false
• C) (1) is false and (2) is true
• D) both (1) and (2) are true

---

Definitions:

Crop Insurance

A risk management tool that protects agricultural producers against loss of their crops due to natural disasters, such as flood, hail, drought, or loss in revenue due to declines in the prices of agricultural commodities.

Price Support

A government intervention mechanism to maintain the price of a commodity at a certain level by buying excess supply or offering subsidies.

Price-Support Program

Government interventions to maintain the market price of a commodity or product above its equilibrium level to support the income of producers.

Freedom to Farm Act

A U.S. law enacted in 1996 aimed at allowing farmers the flexibility to plant what they choose, sell to whom they choose, and manage their business as they see fit, significantly reducing federal government involvement in farming decisions.