Narrbegin Exhibit 10

question 49

Multiple Choice

Narrbegin Exhibit 10.2 Carbon emissions as an externality
-In Exhibit 10.2, which of the following is likely to be true?

• A) Carbon emitting firms include the cost of carbon in their market cost (Supply 1).
• B) Firms exit the industry if the cost of carbon is not included in their market cost (Supply 1).
• C) Tax shifts the 'Supply 2' curve to the right.
• D) If firms are required to purchase emissions permits, the supply curve 'Supply 1' will shift to the left to supply curve 'Supply 2'.

---

Definitions:

Excessive Development

An abnormal or unusually high growth or enlargement in structure or size.

TUNA

Transurethral Needle Ablation, a minimally invasive procedure used to reduce symptoms of an enlarged prostate.

Lubricating Fluid

A substance, such as oil or grease, applied to reduce friction between moving parts and to protect against wear and corrosion.

Foreskin

The fold of skin covering the head of the penis, also known as the prepuce.