Which of the Following Principles Underlies the Economics of Individual

question 101

Multiple Choice

Which of the following principles underlies the economics of individual choices?

• A)There are gains from trade.
• B)Markets move toward equilibrium.
• C)People usually exploit opportunities to make themselves better off.
• D)Resources should be used as efficiently as possible to achieve society's goals.

Evaluate the efficacy of emissions taxes and their potential consequences on pollution levels.

Understand the basic concept and purpose of emissions taxes and their role in reducing pollution.

Analyze the effect of setting emissions taxes lower or higher than the optimal level on pollution.

Recognize the adoption and implications of an emissions tax by the government.