GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

It is currently 24 May 2020, 18:22

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Proposed CO2 reduction schemes present large uncertainties in terms of

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Senior Manager
Senior Manager
User avatar
P
Joined: 31 May 2018
Posts: 432
Location: United States
Concentration: Finance, Marketing
CAT Tests
Proposed CO2 reduction schemes present large uncertainties in terms of  [#permalink]

Show Tags

New post Updated on: 04 Oct 2019, 07:13
1
1
Question 1
00:00
A
B
C
D
E

based on 117 sessions

39% (02:51) correct 61% (03:09) wrong

HideShow timer Statistics

Question 2
00:00
A
B
C
D
E

based on 111 sessions

81% (00:54) correct 19% (01:06) wrong

HideShow timer Statistics

Question 3
00:00
A
B
C
D
E

based on 105 sessions

72% (01:04) correct 28% (01:13) wrong

HideShow timer Statistics

New Project RC Butler 2019 - Practice 2 RC Passages Everyday
Passage # 369, Date : 04-Oct-2019
This post is a part of New Project RC Butler 2019. Click here for Details


Proposed CO2 reduction schemes present large uncertainties in terms of the perceived reduction needs and the potential costs of achieving those reductions. In one sense, preference for a carbon tax or tradeable permit system depends on how one views the uncertainty of costs involved and benefits to be received.

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. CO2 emissions would be reduced to a specific level, and in the case of a tradeable permit program, the cost involved would be handled efficiently, but not controlled at a specific cost level. This efficiency occurs because control efforts are concentrated at the lowest-cost emission sources through the trading of permits.

However, if one is more uncertain about the benefits of a specific level of reduction then a carbon tax may be most appropriate. In this approach, the level of the tax effectively caps the marginal control costs that affected activities would have to pay under the reduction scheme, but the precise level of CO2 achieved is less certain. Emitters of CO2 would spend money controlling CO2 emissions up to the level of the tax. However, since the marginal cost of control among millions of emitters is not well known, the overall effect of a given tax level on CO2 emission cannot be accurately forecasted.


1. 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.
(B) implementing it for all known emitters could be cost-prohibitive.
(C) the marginal cost of control associated with such a tax will likely be affected by other pending CO2 regulations.
(D) if it were introduced at too low a level, it may not result in any significant reduction in CO2 emissions.
(E) it is generally regarded as a better option than tradeable permits by most environmentalists.



2. According to the passage, who should support a tradeable permit program?

(A) a person who is unconcerned with the effects of a new carbon tax.
(B) one who believes that CO2 emissions have already been cut to acceptable levels.
(C) a person who is uncertain that cutting CO2 emissions by a certain percentage will produce the best results.
(D) one who is more concerned with cutting the CO2 emissions of the heaviest producers.
(E) a person who believes that cutting CO2 emissions by a certain percentage will produce the best results.



3. The author would most likely agree with which of the following?

(A) the tradeable permit program offers the best overall solution to rising CO2 emissions.
(B) it is difficult to predict the long term effects of either scheme given the currently available information.
(C) the carbon tax will force major emitters to significantly reduce their CO2 emissions using economic incentives.
(D) CO2 emissions represent the most significant contributor to the greenhouse effect.
(E) other schemes under review may provide better alternatives than the tradeable permit program or the carbon tax.


Originally posted by shridhar786 on 03 Oct 2019, 09:45.
Last edited by SajjadAhmad on 04 Oct 2019, 07:13, edited 1 time in total.
Updated.
GMAT Club team member
User avatar
V
Status: GMAT Club Team Member
Affiliations: GMAT Club
Joined: 02 Nov 2016
Posts: 5887
GPA: 3.62
Re: Proposed CO2 reduction schemes present large uncertainties in terms of  [#permalink]

Show Tags

New post 09 Mar 2020, 07:07
+1 Kudos to posts containing answer explanation of all questions
_________________
GMAT Club Bot
Re: Proposed CO2 reduction schemes present large uncertainties in terms of   [#permalink] 09 Mar 2020, 07:07

Proposed CO2 reduction schemes present large uncertainties in terms of

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne