Global Warming Refers to the Effect of Global Pollutants Such

question 28

Multiple Choice

Global warming refers to the effect of global pollutants such as carbon dioxide on climates on the earth. Climate-induced changes in temperatures affect, among other things, agriculture. Which of the following is a reason why policymakers are still debating if this problem should be addressed and how it should be addressed?

• A) Scientists agree about the damage caused by carbon emissions but disagree about the methods of reducing emissions.
• B) The marginal cost of reducing carbon emissions is known with certainly, but the marginal benefit from reduction is not known with certainty.
• C) The marginal cost of reducing carbon emissions is not known with certainly, but the marginal benefit from reduction is known with certainty.
• D) There is much disagreement about all aspects of the problem: how much carbon emissions contribute to damage from climate change, which in turn informs the benefits from reduction, and what methods to use which in turn determines the cost of reduction.

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Definitions:

Financial Institution

An establishment that focuses on dealing with financial transactions, such as investments, loans, and deposits.

Security Interest

A legal claim or right granted over assets as collateral for the performance of an obligation or repayment of a debt.

Caveat Emptor

A Latin phrase meaning "let the buyer beware," indicating that the buyer assumes the risk for the quality and condition of goods purchased unless they are protected by warranty.

Disclosures

The act of making known to the public or to relevant parties important information, often related to financial data or operational details, required by law or regulation.