When the Government Attempts to Reduce Climate Change by Establishing

question 26

Multiple Choice

When the government attempts to reduce climate change by establishing a minimum level of fuel efficiency on new cars,it is using a(n) :

• A)environmental standard.
• B)emissions tax.
• C)Pigouvian tax.
• D)tradable emissions permit.

Recognize free riders and their effects on the provision of public goods and common resources.

Describe situations where public or private provision of goods leads to optimal or suboptimal outcomes.

Explain the criteria for goods being rivalrous and excludable, and how these properties influence their classification.

Understand the implications of goods that are non-excludable and/or non-rival in terms of potential market failures.

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Definitions:

Gratuitous Promise

A promise made without expecting anything in return, lacking the legal enforceability of a contract due to the absence of consideration.

Binding Contract

An agreement that is legally enforceable in a court of law, holding parties to their promises.

Authenticate

The process of proving or validating the authenticity of something, often through verification of its origin or identity.

Electronic Document

A document that is produced, stored, and transmitted in a digital format.