Asked in a 1990 paperModerate

The Montreal Protocal, signed in 1987 and strengthened in 1990 ?

Correct answer: D. reduces ozone depletion through the cutting of chlorofluorocarbon production

  • A. attains the global optimal level of common property resource
  • B. relies on internationally tradable emission permits
  • C. minimizes free riders of public goods
  • D. reduces ozone depletion through the cutting of chlorofluorocarbon production

Explanation

The Montreal Protocol is an international agreement designed to protect the ozone layer by phasing out chlorofluorocarbons and other ozone-depleting substances. It is not primarily a tradable-emissions-permit system.

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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.

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