When the Government Tries to Control Pollution Through Cap and Trade,it

question 22

Multiple Choice

When the government tries to control pollution through cap and trade,it _____.

• A)issues permits that enables the owners of the permit to pollute.
• B)strictly mentions the amount of pollutants that can be emitted by a particular firm.
• C)levies tax on the polluting firm.
• D)gives subsidies to the firms who adopt clean production technologies.
• E)takes legal actions against the firms who pollute beyond the specified level.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses, representing the company's profitability.

Premium Wheat

Refers to wheat that is of higher quality than standard wheat, often meeting certain criteria for size, condition, and protein content, and therefore commands a higher price in the market.

Cost Recovery Method

An accounting technique used when the future collectibility of revenue is uncertain, recognizing revenue only when cash payments are received.

Revenue Recognition

An accounting guideline that specifies when revenue should be recognized and recorded.