The 1997 Kyoto Protocol Is Best Described as an Agreement

question 23

Multiple Choice

The 1997 Kyoto Protocol is best described as an agreement that requires ________.

• A)all members of the United Nations to reduce their greenhouse gas emissions by 5.2 percent
• B)the United States and Japan to control greenhouse gas emissions by 8% below 1995 levels
• C)the signatory countries to cut greenhouse gas emissions to 5.2 percent below 1990 levels
• D)the signatory countries to reduce greenhouse gas emissions by 80% by 2050

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of buyers and sellers, all selling identical products, with no single entity able to influence the market price.

Externalities

Costs or benefits that affect a party who did not choose to incur that cost or benefit, often leading to market failure if not corrected by government intervention.

Marginal Cost

The boost in expenditure due to producing an additional unit of a product or service.

Coase Theorem

A principle that suggests that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.