When Designing a Policy to Reduce Polluting Emissions,policymakers Are Unlikely

question 80

Multiple Choice

When designing a policy to reduce polluting emissions,policymakers are unlikely to know with certainty what the marginal cost of abatement is for each firm.If policymakers set an emissions cap of X units,and issue tradable permits for this amount,then they

• A)know with certainty what the reduction in emissions will be and at what cost.
• B)know the per- unit cost imposed on firms but do not know what the reduction in emissions will be.
• C)are uncertain about both the amount of emission reduction and the cost.
• D)know with certainty what the equilibrium permit price will be.
• E)know what the reduction in emissions will be but do not know at what cost.

---

Definitions:

Business Visitor

An individual who enters a premises for purposes related to business or commerce, often accorded certain legal protections.

Public Invitee

A person who is invited to enter or remain on property for a purpose directly or indirectly connected to business dealings with the proprietor.

Comparative Negligence

Comparative Negligence is a legal principle where the fault and damages are divided among the parties involved based on the degree of each party's negligence.

Charcoal Fire

The heat and flames produced by burning charcoal, commonly used for cooking and heating purposes.