113 review questions copy

4 for any given reduction in emissions the market

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Unformatted text preview: always delivers greater emissions reductions than a carbon tax. (4) For any given reduction in emissions, the market price of permits under a TEPS is equal to the tax rate under a carbon tax. A. B. C. D. (1) and (2) only. (1) and (3) only. (1), (2) and (4) only. All. 8. “A carbon tax that does not achieve a significant reduction in emissions is a failed policy”. True of false? A. True. B. False. 9. Suppose an individual would be equally happy with (i) a new car and $15,000 less money; and (ii) no new car but no less money. Then her willingness-to-pay (WTP) for the new car is A. less than $15,000. B. equal to $15,000. C. greater than $15,000. D. None of the above. 10. “WTP cannot measure the true value an individual places on something because WTP is constrained by wealth”. True of false? A. True. B. False. 11. Suppose the owner of a house would be equally happy between (i) retaining his house; and (ii) giving up his house in return for $500,00. Then the value he places on his house...
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