Which of the Following Policies Is Considered a Market Incentive

question 34

Multiple Choice

Which of the following policies is considered a market incentive?

• A) carbon tax
• B) renewable energy subsidies
• C) cap-and-trade
• D) raising fuel economy standards

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Definitions:

Machinery

Physical devices or machines, often powered, that are used in manufacturing processes or to perform various tasks in industries.

Collateral

Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower defaults on the repayment terms.

Venture Capital Firms

Companies that invest in startups and early-stage companies with high growth potential in exchange for equity.

Loan

A sum of money borrowed that is expected to be paid back with interest.