Economists Prefer an Emissions Trading Scheme to Other Carbon Reduction

question 72

Multiple Choice

Economists prefer an emissions trading scheme to other carbon reduction measures because:

• A)an ETS requires continuous government intervention.
• B)such as scheme achieves the highest emissions reduction price per tonne of carbon.
• C)such a scheme gives all parties involved more flexibility and more control over their own decisions.
• D)they don't trust government to make the right decisions.

Explain the effects of income and substitution on consumer choices and the demand for goods.

Understand the relationship between price changes, income effect, substitution effect, and consumer demand.

Determine how changes in prices and income affect budget constraints and consumption choices.

Identify factors influencing the marginal utility of goods and services.