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Which Example BEST Describes Cap and Trade

Question 189

Multiple Choice

Which example BEST describes cap and trade?


A) a tax system used to solve emission costs
B) a subsidy system that encourages the production of goods with positive externalities
C) a system of negotiations between polluters and damaged parties that solves externalities
D) a system of licenses that can be bought and sold and that enable holders to pollute up to a specified amount during given periods

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