A Carbon Tax Would Be an Efficient Method of Addressing

question 119

Multiple Choice

A carbon tax would be an efficient method of addressing the problem of global warming because

• A) carbon taxes are an external cost.
• B) it forces firms to internalize the external cost of emissions.
• C) it eliminates the positive externalities associated with global warming.
• D) firms are likely to prefer the carbon tax over the cap-and-trade policy.
• E) it is less likely than the cap-and-trade policy to result in rising prices.

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Definitions:

-oid

A suffix used in English to denote similarity to something else, indicating an object's resemblance in form or structure to another.

Caution

A warning or advice to prevent risk or danger.

Sigmoidoscopy

A medical examination of the lower part of the large intestine using a flexible tube called a sigmoidoscope.

Large Intestine

The last part of the digestive system, responsible for water absorption and formation of feces.