Hi,
This is my first ever attempt to answer any question on GMATCLUB, apologies in advance
P1
Basically the passage starts with addressing uncertainties between the perceived benefits of Co2 reduction schemes and the costs associated with them.
Two such measures are mentioned.
P2
One of them is discussed here. It is told under what conditions will it be suitable to use these such as When there is confidence on achievement of a level. It also says that costs associated would be handled efficiently but not controlled to a specific level. Also tells why is this method efficient.
P3
It talks about the second mentioned method. Here it says this method is suitable in conditions when there is less certainty. Also mentions why it is difficult to measure the impact of this method, since there are a number of emitters involved and hence costs will have different impact on each of those.
Overall Idea : It says that in the light of given co2 reduction schemes, there is a level of uncertainties in terms if their benefits and costs. One has to consider these to make the decisions. It also goes through each of the methods individually to explain the uncertainties involved with them.
Q1.)Which of the following can be inferred from the passage concerning a carbon tax?
(A) if it were tiered according to the income of each emitter, then it could be more effective than tradeable permits. - The passage nowhere implies this. By capping it is already setting the upper limits, hence in a way taxing them according their income. The level if tiered according to the income could still be not sufficient to reduce the emissions.
(B) implementing it for all known emitters could be cost-prohibitive. - This is never stated, instead it says that cost is not known to measure the impact.
(C) the marginal cost of control associated with such a tax will likely be affected by other pending CO2 regulations. - Nowhere in the passage explaining the "tax" way is any other method mentioned, the passage strictly deals with the uncertainty of measuring the effect.
(D) if it were introduced at too low a level, it may not result in any significant reduction in CO2 emissions. - This can be a bit tricky, but try and look that what it says by mentioning "Emitters of CO2 would spend money controlling CO2 emissions up to the level of the tax", we can infer by this that their efforts are only limited to the level of tax. Now imagine the lower the capping, the lower the reduction and hence this makes complete sense.
(E) it is generally regarded as a better option than tradeable permits by most environmentalists. - Nowhere it is mentioned that this method is any better than the one in the previously mentioned method.
Q2.)According to the passage, who should support a tradeable permit program?
This is fairly mentioned in the passage, "For those confident that achieving a specific level of CO2 reduction will yield very significant benefits then a tradeable permit program may be most appropriate".
(A) a person who is unconcerned with the effects of a new carbon tax. - Not mentioned
(B) one who believes that CO2 emissions have already been cut to acceptable levels. - Distortion of the given, confuses confidence in achieving to already achieved.
(C) a person who is uncertain that cutting CO2 emissions by a certain percentage will produce the best results.- The method is all about "certainty"
(D) one who is more concerned with cutting the CO2 emissions of the heaviest producers. - Never mentioned.
(E) a person who believes that cutting CO2 emissions by a certain percentage will produce the best results. - You can match this choice by the above mentioned line.
3. The author would most likely agree with which of the following?
This is more or less on the lines of "Main point of the passage".
(A) the tradeable permit program offers the best overall solution to rising CO2 emissions. - Never it says any method is better or best.
(B) it is difficult to predict the long term effects of either scheme given the currently available information.- The passage starts with this idea and then expands on it as it goes on explaining the two ways in detail.
(C) the carbon tax will force major emitters to significantly reduce their CO2 emissions using economic incentives. - The choice expresses certainty where the passage explicitly states that the method is uncertain in terms of its effects.
(D) CO2 emissions represent the most significant contributor to the greenhouse effect. - Never mentioned, passage about co2 reduction methods, not co2.
(E) other schemes under review may provide better alternatives than the tradeable permit program or the carbon tax.- The passage is discussing two and the uncertainties associated with them, never it mentions any other way.
egmat,
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