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:

Economic Decisions

Choices made by individuals, businesses, or governments regarding the allocation of resources and the distribution of goods and services.

Total Burden

The full impact or total effect of something, often used in economics to refer to the combination of direct and indirect costs associated with a policy or tax.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually do pay.

Economic Decision

A choice made by individuals or organizations regarding the allocation of resources and the distribution of goods and services, often driven by cost-benefit analyses.