To Reduce the Level of Pollution Emitted by Firms in an Industry,the

question 9

Multiple Choice

To reduce the level of pollution emitted by firms in an industry,the government could use a cap-and-trade policy or a carbon tax.Which of the following is true?

• A) The price of the good sold will rise with the carbon tax policy but not with the cap-and-trade policy.
• B) The quantity of the good sold will fall with the carbon tax policy but not with the cap-and-trade policy.
• C) The price of the good sold will rise under either policy, but there will be no change in the level of production.
• D) The quantity of the good sold will fall under either policy, but there will be no change in the price of the good.
• E) The price of the good sold will rise under either policy, and there will be a reduction in the level of production.

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Definitions:

European Goods

Products and items produced in Europe, often traded to other parts of the world throughout history, significantly impacting global trade networks and indigenous cultures.

Northern Plains

A vast geographical area in the United States known for its flat terrain, grasslands, and significant historical and environmental importance.

Trade

The process of purchasing, selling, or trading goods and services among individuals or nations.

Europeans

The inhabitants of Europe or individuals of European descent.