The Government Can Aid in Reducing Pollution by Using a Policy

Multiple Choice

The government can aid in reducing pollution by using a policy of cap-and-trade, which means that

A) polluters are taxed on the amount of pollution they discharge.
B) emission charges are established by the government.
C) each polluter is assigned a pollution limit and is given tradable permits that allow this amount of pollution.
D) only some producers pollute and the others go out of business.