hard · GRE Verbal
An economist reviewing a proposed carbon-tax model notes it correctly prices emissions at the point of production but does not adjust for firms relocating output to untaxed jurisdictions, a response the model's own assumptions imply should occur. She calls the pricing mechanism sound and the omission a fixable gap rather than a fatal flaw. Which choice best captures the economist's stance toward the model?
- Unreserved approval: the model requires no further revision before adoption and no aspect of the model needs any further scrutiny at all
- Complete rejection: the pricing mechanism itself is fundamentally miscalculated
- Cautious endorsement: the core mechanism works, but a specific omission needs correction
- Detached neutrality: the economist offers no judgment on the model's merit
- Preference for abandoning carbon pricing in favor of an unrelated policy
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