A tradable allowance is:
A) the minimum amount set by the government that can be bought or sold in a market.
B) a production or consumption quota that can be bought or sold.
C) the permitted price for the trade of a particular good.
D) None of these statements is true.

Question

Quizplus · Accepted Answer

A tradable allowance refers to a production or consumption quota that can be bought or sold. It is a permit or license that allows the owner to produce or consume a certain amount of a particular good within a specific time frame. The permit can be bought or sold in the market, allowing for the transfer of the right to produce or consume the good.

A Tradable Allowance Is