Climate Is Probably the Most Important Element of the Physical

question 47

Multiple Choice

Climate is probably the most important element of the physical forces as it sets the limits on:

• A) annual rainfall, thus water supply.
• B) population growth patterns.
• C) what people can do physically and economically.
• D) expected FDI.

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Definitions:

Carbon Fee

A charge imposed on the carbon content of fossil fuels, aimed at reducing carbon dioxide emissions.

Coase Theorem

An economic theory proposing that if trade in an externality is possible and there are no transaction costs, parties can negotiate solutions to conflicts that lead to an efficient outcome regardless of the initial allocation of property rights.

Pollution Tax

A tax levied on the amount of pollution emitted by firms to incentivize reduction in environmental harm.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and goods.