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The economic problem

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Question 17

A government is evaluating the introduction of a £50 \pounds 50\,£50 per tonne carbon tax on major industrial polluters. Which of the following statements about this policy is a positive economic statement?

A

A carbon tax of £50\pounds 50£50 per tonne is estimated to reduce industrial carbon emissions by 15%15\%15% within three years.

B

A carbon tax is a fairer policy for reducing carbon emissions than implementing a cap-and-trade scheme.

C

The revenue generated from the carbon tax should be ring-fenced to fund community-based green energy initiatives.

D

It is morally unacceptable for a government to prioritize short-term industrial growth over environmental preservation.

Markscheme

The economic problem Questions

  1. A Level
  2. /Economics
  3. /The economic problem

53 exam-style questions on OCR A Level Economics The economic problem. Each one has a worked solution and a mark scheme showing where the marks go.

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