The Price of a Pollution Right Is

question 165

Multiple Choice

The price of a pollution right is

• A)determined by consumers
• B)determined by government
• C)a user charge
• D)determined by supply and demand
• E)a subsidy

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Definitions:

Futures Contracts

Futures contracts are standardized legal agreements to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Payoff

The potential gain or loss that will result from a specific investment or decision.

Ounce

A unit of weight commonly used in the United States and the United Kingdom, equal to one-sixteenth of a pound or approximately 28.35 grams.

Futures Contract

A standardized legal agreement to buy or sell an asset at a predetermined price at a specified time in the future.