A Carbon Tax Would Be an Efficient Method of Addressing

question 119

Multiple Choice

A carbon tax would be an efficient method of addressing the problem of global warming because

• A) carbon taxes are an external cost.
• B) it forces firms to internalize the external cost of emissions.
• C) it eliminates the positive externalities associated with global warming.
• D) firms are likely to prefer the carbon tax over the cap-and-trade policy.
• E) it is less likely than the cap-and-trade policy to result in rising prices.

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Definitions:

Cognitive-behavioral Therapy

A form of psychotherapy that emphasizes the role of thinking in how we feel and what we do, focusing on changing negative thought patterns and behaviors.

Self-defeating Thoughts

Negative and often irrational thoughts that impede one's success or well-being.

Maladaptive Behaviors

Behaviors that inhibit an individual's ability to adjust healthily to particular situations.

Dialectical Behavior Therapy

A type of cognitive-behavioral therapy that aims to teach people new skills to manage painful emotions and decrease conflict in relationships, particularly for those with borderline personality disorder.