When Designing a Policy to Reduce Polluting Emissions,policymakers Are Unlikely

question 100

Multiple Choice

When designing a policy to reduce polluting emissions,policymakers are unlikely to know with certainty what the marginal cost of abatement is for each firm.If policymakers set an emissions cap of X units,and issue tradable permits for this amount,then they

• A)know what the reduction in emissions will be but not the per-unit cost to firms.
• B)know with certainty what the reduction in emissions will be and at what cost.
• C)know the per-unit cost imposed on firms but do not know what the reduction in emissions will be.
• D)are uncertain about both the amount of emission reduction and the cost.
• E)know with certainty what the equilibrium permit price will be.

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Definitions:

Learner

An individual who acquires knowledge or skills through study, experience, or being taught.

Conformity

The act of aligning one's attitudes, beliefs, or behaviors to match those of a group or social standard, often due to perceived pressure.

Door-in-the-Face Technique

A persuasion strategy where an initially large request is made knowing it will be refused so that a smaller, more moderate request will seem reasonable by comparison.

Temporoparietal Junction

A region of the brain where the temporal and parietal lobes meet, involved in processing social information and theory of mind.