Do Economists Tend to Favor a System in Which Power

question 34

Multiple Choice

Do economists tend to favor a system in which power plants buy and sell the right to pollute in the form of emission credits?

• A) No; these programs are ineffective because they encourage major polluters to free ride on the efforts of others.
• B) No; it is possible for some firms to do nothing if they simply buy enough credits.
• C) Yes; they encourage all firms to cut pollution by the same percentage.
• D) Yes; they believe that such a proposal would achieve a level of pollution reduction with the lowest cost to society.

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Definitions:

Seasonal Discounts

Price reductions offered during certain times of the year to stimulate sales during off-peak seasons.

Channel Members

Entities involved in the process of moving products or services from the manufacturer to the end consumer, such as wholesalers, retailers, or distributors.

Carmex

A brand of topical lip balm produced to moisturize, heal, and protect dry or chapped lips.

Price Setting

The process of determining the selling price of a product or service, based on factors such as cost, demand, and competitive prices.