The Kyoto Treaty to Reduce Global Warming

question 16

Multiple Choice

The Kyoto treaty to reduce global warming

• A) does not require developing countries to make any cuts in their greenhouse gas emissions
• B) requires participating countries to cut CO₂, CH₄, and N₂O emissions
• C) went into effect in 2005
• D) was not supported by the U.S. after 2001
• E) all of these answers

---

Definitions:

Risk-averse

A characteristic of preferring to avoid loss over making a gain, typically by selecting the option with the smallest possible risk.

Expected Utility

A theory in economics that quantifies how choices are made when the outcomes are uncertain.

Utility

A measure of satisfaction or pleasure that individuals get from the consumption of goods and services.

Risk Premium

The extra return expected by investors for holding a risky asset over a risk-free one, serving as compensation for the additional risk.