Two Policy Options for Reducing Emissions Are Cap-And-Trade and the Carbon

question 55

Multiple Choice

Two policy options for reducing emissions are cap-and-trade and the carbon tax. Which of the following is true?

• A) Both will result in lower prices for consumers.
• B) Both will result in lower costs for firms.
• C) Both will increase total emissions.
• D) Both will discourage the development of greener technologies.
• E) Both will not raise large amounts of revenue for the government.

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Investment

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Inflation Rate

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The total worth of all goods and services produced within a country during a given time frame is defined as Gross Domestic Product, reflecting the nation's economic activity.