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:
Cap and trade system T/F

True

Explanation:

Cap and trade system is a system which is used to minimize the releases of pollution to the atmosphere

The cap part of this system is the one which focuses on minimizing pollution effect from the green house gases

The trade part is the one which monitors how companies buy and sell the rights to emit only a minor amount , trade helps companies finds ways to cut emission in cost effective ways.

Caps defines penalities that apply when one violates emission rules.

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