Economists Mostly Agree That the Problem of Climate Change Necessitates

question 33

Multiple Choice

Economists mostly agree that the problem of climate change necessitates government action in the form of market-based incentives such as:

• A) tax rebates to those causing negative externalities.
• B) a reduction in the amount of gasoline that each person is allowed to purchase.
• C) a carbon tax or a cap and trade system.
• D) a reduction in the price of green cars and appliances.

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Definitions:

Incremental Manufacturing Cost

The additional costs incurred to produce an extra unit of output, including additional materials, labor, and overhead expenses.

Relevant Range

The scope of operations where the premises regarding variable and fixed cost dynamics hold true.

Manufacturing Overhead Cost

Expenses related to the manufacturing process that are not directly attributable to individual products, such as utility costs, depreciation, and maintenance of equipment.

Produced Units

The quantity of items manufactured during a specific period.