Due to the Concept That Economist Call Asymmetric Information, Polluting

question 20

Multiple Choice

Due to the concept that economist call asymmetric information, polluting firms can mislead regulators regarding the costs of abatement. It is often in the interest of polluting firms to _________ the costs abatement so that the regulated target for emissions is _______ than the socially efficient level.

• A) understate; lower
• B) understate; higher
• C) overstate; lower
• D) overstate; higher

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Definitions:

Anthony Giddens

A British sociologist who developed the theory of structuration and wrote extensively on contemporary society, modernity, and globalization.

Samuel Huntington

An American political scientist known for his "Clash of Civilizations" theory, which posits cultural and religious identities as the primary sources of global conflict.

Cultural Identity

represents the identity or feeling of belonging to a group based on shared cultural traits, heritage, language, religion, and traditions.

State Function

State function refers to the roles and responsibilities carried out by a government to maintain order, provide public services, and implement policies within a country.