(Last Word) in a Cap-And-Trade Program

Multiple Choice

(Last Word) In a cap-and-trade program,

A) government fixes the price of pollution rights and firms choose how many permits to purchase.
B) government fixes the maximum amount of a pollutant that firms can discharge and issues permits that firms can buy from and sell to each other.
C) each firm is provided a fixed number of permits for a particular pollutant and no individual firm is allowed to acquire additional permits.
D) firms can emit whatever type of pollutant they want, so long as the total tonnage does not exceed a government-established quantity.