Question 1

Organic pollution does not represent an external cost.

Accepted Answer

A) True 
 B)False  False

Question 2

Externalities prevent the market mechanism from achieving the optimal rate of pollution.

Accepted Answer

A) True 
 B)False  True

Question 3

The greenhouse effect is largely caused by

Accepted Answer

A) The release of carbon dioxide into the atmosphere. 
B) Human activity. 
C) The federal government. 
D) Industrial firms. 
A) The release of carbon dioxide into the atmosphere. 
B) Human activity. 
C) The federal government. 
D) Industrial firms. A

Question 4

Social costs are

Accepted Answer

A) The total resource costs of an economic activity. 
B) Usually less than private costs. 
C) The costs of an economic activity borne by the producer. 
D) Equal to external costs minus private costs. 
A) The total resource costs of an economic activity. 
B) Usually less than private costs. 
C) The costs of an economic activity borne by the producer. 
D) Equal to external costs minus private costs.

Question 5

Explain why firms do not engage in the efficient amount of environmental protection.

Accepted Answer

The behavior of profit-maximiz

Question 6

A chemical-producing firm is located just upstream from an electric power plant.Instead of the more expensive procedure of burying its wastes,the chemical-producing firm begins dumping its waste into the stream.This causes increased variable costs for the power plant,which uses water from the stream to cool its turbines.From society's viewpoint,the chemical producer's pollution causes an

Accepted Answer

A) Overproduction of chemicals and an underproduction of electric power. 
B) Underproduction of chemicals and an overproduction of electric power. 
C) Optimal production of chemicals and electric power. 
D) Optimal production of electric power and a suboptimal production of chemicals. 
A) Overproduction of chemicals and an underproduction of electric power. 
B) Underproduction of chemicals and an overproduction of electric power. 
C) Optimal production of chemicals and electric power. 
D) Optimal production of electric power and a suboptimal production of chemicals.

Question 7

A totally pollution-free environment is an economically sound social goal.

Accepted Answer

A) True 
 B)False

Question 8

When thinking about the real costs of environmental cleanup,we should take into consideration

Accepted Answer

A) The total costs of the cleanup as estimated by the Environmental Protection Agency. 
B) A comparison of the costs of cleanup to the overall size of the U.S.economy. 
C) The marginal costs but not the marginal benefits. 
D) A comparison of the size of China's economy to the United States. 
A) The total costs of the cleanup as estimated by the Environmental Protection Agency. 
B) A comparison of the costs of cleanup to the overall size of the U.S.economy. 
C) The marginal costs but not the marginal benefits. 
D) A comparison of the size of China's economy to the United States.

Question 9

In Figure 28.1,emission fees will

Accepted Answer

A) Reduce external benefits. 
B) Increase the marginal cost of production. 
C) Raise marginal revenues. 
D) Shift the marginal cost of production to the right. 
A) Reduce external benefits. 
B) Increase the marginal cost of production. 
C) Raise marginal revenues. 
D) Shift the marginal cost of production to the right.

Question 10

In 2013 the United Nations concluded that global warming

Accepted Answer

A) Was not caused by human activity. 
B) Was not scientifically proven. 
C) Was the result of human activity with a 95 percent certainty. 
D) Was not occurring. 
A) Was not caused by human activity. 
B) Was not scientifically proven. 
C) Was the result of human activity with a 95 percent certainty. 
D) Was not occurring.

Question 11

External costs are the difference between

Accepted Answer

A) Social costs and private costs. 
B) Benefits and costs. 
C) Average and marginal costs. 
D) Marginal social benefits and marginal social costs. 
A) Social costs and private costs. 
B) Benefits and costs. 
C) Average and marginal costs. 
D) Marginal social benefits and marginal social costs.

Question 12

If the government imposed a green tax on gasoline,the amount of air pollution should

Accepted Answer

A) Increase as people begin to use public transportation more. 
B) Increase as people begin to use alternative fuels instead of gasoline. 
C) Decrease as people switch to larger cars to drive in the country where pollution is not a problem. 
D) Decrease as people switch to more fuel-efficient cars,find less fuel intensive alternatives,and drive less. 
A) Increase as people begin to use public transportation more. 
B) Increase as people begin to use alternative fuels instead of gasoline. 
C) Decrease as people switch to larger cars to drive in the country where pollution is not a problem. 
D) Decrease as people switch to more fuel-efficient cars,find less fuel intensive alternatives,and drive less.

Question 13

The EPA estimates that only 10 percent of the current air and water pollution can be eliminated with known and available technology.

Accepted Answer

A) True 
 B)False

Question 14

Explain the differences between external costs,private costs,and social costs and how the presence of external costs leads to market failure.

Accepted Answer

Private costs are the costs of an econom

Question 15

According to the In the News article,"A "War on Coal"?,"

Accepted Answer

A) The Obama administration is attempted to cut air pollution from coal. 
B) The Obama administration wanted to adopt new rules to reduce water pollution from coal mining. 
C) The coal industry is expanding and producing acid rain. 
D) The Obama administration concluded that the job losses from regulation are not worth the reduction in pollution. 
A) The Obama administration is attempted to cut air pollution from coal. 
B) The Obama administration wanted to adopt new rules to reduce water pollution from coal mining. 
C) The coal industry is expanding and producing acid rain. 
D) The Obama administration concluded that the job losses from regulation are not worth the reduction in pollution.

Question 16

A polluting company may be able to purchase the right to pollute through

Accepted Answer

A) Higher user fees. 
B) Emission charges. 
C) Pollution fines. 
D) Pollution permits. 
A) Higher user fees. 
B) Emission charges. 
C) Pollution fines. 
D) Pollution permits.

Question 17

Describe the two general strategies for environmental pollution abatement.

Accepted Answer

The two general strategies for environme

Question 18

In general,technology that reduces pollution will shift both the MC and ATC curves upward.

Accepted Answer

A) True 
 B)False

Question 19

An In the News article is titled "Recycling Wastes Money." When the government requires specific processes for reducing pollution,it is using:

Accepted Answer

A) Emission charges. 
B) Command-and-control strategy. 
C) User fees. 
D) Pollution fines. 
A) Emission charges. 
B) Command-and-control strategy. 
C) User fees. 
D) Pollution fines.

Question 20

If the tax on gasoline is increased to provide incentives to curb air pollution,then the tax serves as

Accepted Answer

A) A user fee. 
B) A command-and-control standard. 
C) A pollution fine. 
D) An emission charge. 
A) A user fee. 
B) A command-and-control standard. 
C) A pollution fine. 
D) An emission charge.

Exam 28: Environmental Protection

Organic pollution does not represent an external cost.

Externalities prevent the market mechanism from achieving the optimal rate of pollution.

The greenhouse effect is largely caused by

Social costs are

Explain why firms do not engage in the efficient amount of environmental protection.

A totally pollution-free environment is an economically sound social goal.

When thinking about the real costs of environmental cleanup,we should take into consideration

In Figure 28.1,emission fees will

In 2013 the United Nations concluded that global warming

External costs are the difference between

If the government imposed a green tax on gasoline,the amount of air pollution should

The EPA estimates that only 10 percent of the current air and water pollution can be eliminated with known and available technology.

Explain the differences between external costs,private costs,and social costs and how the presence of external costs leads to market failure.

According to the In the News article,"A "War on Coal"?,"

A polluting company may be able to purchase the right to pollute through

Describe the two general strategies for environmental pollution abatement.

In general,technology that reduces pollution will shift both the MC and ATC curves upward.

An In the News article is titled "Recycling Wastes Money." When the government requires specific processes for reducing pollution,it is using:

If the tax on gasoline is increased to provide incentives to curb air pollution,then the tax serves as

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