To Reduce the Level of Pollution Emitted by Firms in an Industry,the

question 107

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 (where the government taxes carbon producers based on the amount of carbon produced) .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:

Ignition Switch

A device in a vehicle that initiates the engine's operation by connecting the electrical circuit to start the engine.

Ballast Resistor

A passive electronic component used to limit the amount of current in an electrical circuit.

DC Motor

An electric motor that runs on direct current (DC) electricity, used in many applications for its simplicity and controllability.

Conductors

Materials or objects that allow the flow of electrical current through them.