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:

Put Increases

An erroneous or unclear term; possibly refers to the increase in value of a put option as the underlying asset's price decreases.

Underlying Stock

The basic security that one has the right to buy or sell under the terms of an option contract or other derivative agreement.

Value

The financial, tangible, or estimated value of a property, product, or service.

Intrinsic Value

The actual, inherent worth of an asset, independent of its market value, often calculated using fundamental analysis.