The System of Tradable Allowances for Carbon Dioxide Proposed by President

Multiple Choice

The system of tradable allowances for carbon dioxide proposed by President Obama:
I. would be easy to implement today if not for the political in-fighting in Congress.
II. would create incentives for firms to move toward the use of fuels that contribute less to global warming (such as nuclear, solar, and so forth) .
III. would create large revenues for the government, but do little to increase economic efficiency.

A) I and II only
B) II and III only
C) II only
D) I, II, and III