A Major Problem with Using Tradable Emissions Allowance System to Control

question 195

Multiple Choice

A major problem with using tradable emissions allowance system to control pollution is

• A) that it grants firms a license to pollute.
• B) the difficulty in determining the emissions target.
• C) it discourages firms from implementing cost-effective pollution control technology.
• D) that it does not eliminate pollution completely.

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Definitions:

Credit Sales

Sales of goods or services that are paid for at a later date, extending credit to customers.

Bad Debt Expense

An expense reported by businesses to account for receivables that are no longer collectible, affecting the net income.

Allowance for Doubtful Accounts

A contra-asset account on the balance sheet, estimating the amount of receivables that are expected to be uncollectible.

Uncollectible Accounts Receivable

Debts owed to a company that are considered unlikely to be recovered, often due to the debtor's inability to pay.