Which of the Following Would NOT Be an Effective Way

question 537

Multiple Choice

Which of the following would NOT be an effective way to escape a social dilemma regarding conservation issues?

• A) levying a pollution tax so that it would cost more, not less, for a business to pollute
• B) offering lower electricity rates for shifting use to off-peak times
• C) educating the public about supply and demand
• D) offering rebates for installing insulation or buying energy-efficient appliances

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Definitions:

Shortage

A situation where the demand for a product exceeds its supply in the market.

Quantity Demanded

The entire quantity of a product or service that buyers are prepared and capable of buying at a certain price within a defined timeframe.

Interest Rates

The cost of borrowing money or the rate of return on investments, typically expressed as a percentage of the principal.

Loanable Funds

The money available for lending and borrowing in the financial markets.