Final answer:
The scenario described in the question is an example of marketable permits, where each student is allocated 5 smoking permits a day and allowed to trade them.
Step-by-step explanation:
The scenario described in the question is an example of marketable permits. Marketable permits, also known as cap-and-trade systems, involve allocating permits to individuals or firms that allow them to emit a certain quantity of pollution. In this case, CoolU has allocated each student 5 smoking permits a day, which they can trade with each other.