If a Conflict of Interest Exists

question 14

Multiple Choice

If a conflict of interest exists

• A)it will always have serious adverse consequences.
• B)it may not have a serious adverse consequences if the incentive to take advantage of the conflict is low.
• C)the government needs to step in to pass legislation to remove the conflict.
• D)there will not be serious adverse consequences,even if the incentive to take advantage of the conflict is low.

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Definitions:

Tradable Emissions Permits

A system in which companies are allocated permits that allow them to emit a certain level of pollutants, with the option to buy, sell, or trade permits with other companies.

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded in the market, leading to market balance.

Equilibrium Quantity

Equilibrium quantity is the quantity of goods or services supplied and demanded at the equilibrium price, where the quantity supplied equals the quantity demanded in a market.

Emissions Tax

A tax levied on companies for the pollutants they emit into the environment.