Author Question: Cap-and-trade refers to A) capping emissions and issuing tradeable emissions permits. B) capping ... (Read 149 times)

nautica902 · **on:** Jun 29, 2018

Cap-and-trade refers to

A) capping emissions and issuing tradeable emissions permits.
B) capping revenue from selling emissions permits.
C) countries trading fishing rights in international waters.
D) capping taxes on firms that engage in international trade.
E) capping the benefits gained from pollution controls.

Question 2

An externality occurs when ________.

A) the quantity demanded of a good exceeds the quantity supplied
B) the quantity supplied of a good exceeds the quantity demanded
C) the government regulates production and consumption decisions
D) an economic activity affects third parties not engaged in the activity