Which of the Following Is True

question 23

Multiple Choice

Which of the following is true?

• A) Regulation is a superior method of emissions reduction because it can be controlled by the government.
• B) Once the property rights are assigned, the carbon tax regime will adjust the private costs to the full social costs and the perfect market equilibrium will be achieved.
• C) Once the correct property rights are assigned and the market is competitive, the emissions trading scheme will achieve the socially desirable outcome.
• D) The property rights accompanied by regulation are superior policy solutions because the government knows the best solution for emissions reduction.

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Definitions:

Perceptual Set

A predisposition to perceive things in a certain way, based on expectations, experiences, and context.

John Locke

A 17th-century English philosopher and physician, often considered one of the most influential of Enlightenment thinkers, particularly concerning the development of political philosophy and epistemology.

Parapsychology

The study of mental phenomena that are excluded from or inexplicable by orthodox scientific psychology, such as telepathy and psychokinesis.

ESP Phenomenon

Extra-sensory perception; claimed perception of information not gained through the known human senses and not deducible from previous experience.