"The United States Should Not Sign the Kyoto Protocol, an International

question 374

Multiple Choice

"The United States should not sign the Kyoto Protocol, an international treaty that requires industrial nations to limit carbon dioxide emissions to 1990 levels." An economist should be expected to

• A) disagree with this statement. The science on global warming is clearly known, and the Kyoto Protocol is the best, lowest cost, method to minimize the effects of global warming.
• B) disagree with this statement. Even though much critical information is still missing, the Kyoto Protocol will certainly reduce carbon emissions enough to greatly reduce atmospheric warming.
• C) agree with this statement. The benefits of a warming climate will unquestionably be greater than the costs.
• D) probably agree with this statement. The costs of the Kyoto Protocol are great, and the expected impact from it on world temperatures over the next century is extremely small.

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Definitions:

Interest

The cost of borrowing money, typically expressed as an annual percentage rate, or the return on investment for savings.

Inflation

The frequency at which the overall cost of goods and services elevates, depreciating the purchasing power.

Cost-Of-Living Adjustment

An increase in income or benefits to compensate for a rise in the prices of goods and services, maintaining the purchasing power.

Employment Contract

A formal agreement between an employer and an employee outlining the terms of employment, including responsibilities, compensation, and duration.