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What Is Cap and Trade Policy

Question 7

Multiple Choice

What is cap and trade policy?


A) Capacity agreements on the total weight of imports and exports for a given country.
B) Credits traded across governments for overall emissions of pollutants compared to each nation's productivity and exports.
C) A progressive heavy fine and remediation system for countries exceeding their agreed upon limits in overall emissions of pollutants.
D) Governments set a limit on overall emissions of pollutants and then let the market determine how industry would respond.

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