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:

Right Intention

The ethical principle that actions should be guided by good or morally correct purposes.

Properly Authorized

Officially or formally approved or sanctioned, according to the relevant laws or standards.

Control Orders

Legal measures imposed by governments to restrict the freedom of individuals for security reasons, often without a prior trial.

Terrorist Attacks

Acts of violence or intimidation, usually motivated by political, religious, or ideological beliefs, aimed at creating fear, disrupting societies, and achieving specific goals.