President Barack Obama Proposed Using a System Of

question 47

Multiple Choice

President Barack Obama proposed using a system of:

• A) Pigouvian taxes to reduce carbon dioxide emissions.
• B) tradable allowances to reduce carbon dioxide emissions.
• C) depreciation permits to reduce carbon emissions.
• D) fines and levies to address greenhouse gas emissions.

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Definitions:

Indifference Curve

A graph showing different combinations of two goods that give the consumer equal satisfaction and utility.

Marginal Rate

Marginal rate commonly refers to the change in one variable relative to a unit change in another, such as in taxation or interest.

Substitution

The economic principle stating that as prices rise or consumer preferences change, individuals substitute one good or service for another.

Utility Function

A mathematical representation of how different combinations of goods or services generate levels of happiness or satisfaction to the consumer.