Read the Following Scenario and Answer the Question Below

question 16

Multiple Choice

Read the following scenario and answer the question below.
The Intergovernmental Panel on Climate Change reports that physical, biological, and economic evidence exists confirming global climate change due to human -produced greenhouse gases. Although the United States emits most of Earthʹs carbon dioxide, its policies do not reflect concern over its environmental effects. The United States failed to ratify the Kyoto Protocol, an international agreement signed by other developed nations to reduce carbon dioxide emissions. Requested voluntary reductions of carbon dioxide emissions have not been effective in reducing greenhouse gases. Revisions to the 1970 Clean Air Act, called the ʺClear Skies Initiative,ʺ were proposed to limit mercury, nitric oxides, and sulfur oxide emissions from power plants. Nicknamed by Robert F. Kennedy, Jr., as the ʺClear Lies Initiative,ʺ this proposal did not specifically address emission of carbon dioxide, and its loopholes precluded older power plants from modernizing, seemingly supporting polluting industries with political influence. Environmentalists are arguing for immediate action, including stricter laws to limit power plant carbon dioxide emissions and provide subsidies for renewable energy. They favor ʺportfolio standards,ʺ requiring electric companies to provide clean energy alternatives to consumers and ʺgreen tags,ʺ
ʺwind certificates,ʺ and ʺgreen pricingʺ to support the use of alternative fuels.
-One factor contributing to U.S. resistance to legal intervention regarding global climate change is ______________.

• A) lack of scientific evidence supporting global climate change
• B) political influence of the petroleum, coal and automobile industries
• C) the precautionary principle
• D) lack of support from other developed nations around the world
• E) the success of voluntary reductions of carbon dioxide emissions by U.S. power plants

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Definitions:

Inferior Good

A type of good for which demand decreases when the income of consumers increases, inversely related to income changes.

Indifference Curves

Curves that represent the locus of various points indicating combinations of goods giving equal satisfaction and utility to the consumer.

Inferior Good

A category of product that sees reduced demand as the income levels of buyers rise.

Normal Good

A normal good is one for which demand increases as the income of consumers increases.