It Has Been Proposed That a Government Agency Be Charged

Multiple Choice

It has been proposed that a government agency be charged with the task of determining the amount of pollution that the atmosphere (or a body of water) can safely absorb, establish "rights" to this limited amount of pollution, and sell those limited amount of rights to firms. The firms can then buy and sell these rights among themselves later. This approach is known as the

A) taxes and subsidies system.
B) cap-and-trade system.
C) property rights system.
D) market and command system.