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:

Correlations

A statistical measure that indicates the extent to which two or more variables fluctuate together, showing the strength and direction of a relationship between variables.

Hypothesis Testing

A statistical method used to determine whether there is enough evidence in a sample of data to infer that a certain condition holds for the entire population.

Standard Deviation

A statistical measure that quantifies the dispersion or variability of a set of numerical data from its mean, indicating how spread out the data points are.

Measure of Variability

A statistical indicator that describes the degree to which scores in a dataset are spread out or dispersed.