Question 1

An example of a negative externality in consumption is

Accepted Answer

A) A power plant's release of thermal pollution into a nearby river. 
B) A passenger on a train littering. 
C) A large cattle farm creating air pollution. 
D) You finishing college and contributing to society. 
A) A power plant's release of thermal pollution into a nearby river. 
B) A passenger on a train littering. 
C) A large cattle farm creating air pollution. 
D) You finishing college and contributing to society.

Question 2

In Figure 28.1,if pollution costs are external,the rate of output will be

Accepted Answer

A) Less than 200 units. 
B) 200 units. 
C) 320 units. 
D) Greater than 320 units. 
A) Less than 200 units. 
B) 200 units. 
C) 320 units. 
D) Greater than 320 units.

Question 3

From an economic standpoint,the pursuit of a zero-pollution environment is

Accepted Answer

A) The morally correct strategy,and costs should not be a consideration. 
B) Probably not in society's interest because of the high opportunity costs. 
C) The economically correct strategy. 
D) The economically correct strategy as long as benefits accrue to society. 
A) The morally correct strategy,and costs should not be a consideration. 
B) Probably not in society's interest because of the high opportunity costs. 
C) The economically correct strategy. 
D) The economically correct strategy as long as benefits accrue to society.

Question 4

If those who cause pollution are expected to bear its burden,then the price of automobiles should increase to cover the cost of antipollution devices.

Accepted Answer

A) True 
 B)False

Question 5

Only ________ percent of the U.S.population is served by a system of sewers and adequate water treatment plants.

Accepted Answer

A) 40 
B) 50 
C) 60 
D) 70 
A) 40 
B) 50 
C) 60 
D) 70

Question 6

Tradable pollution permits,when compared to command-and-control options,tend to

Accepted Answer

A) Provide the same amount of pollution abatement at a higher cost. 
B) Provide the same amount of pollution abatement at a lower cost. 
C) Provide the same amount of pollution abatement at the same cost. 
D) Be inefficient. 
A) Provide the same amount of pollution abatement at a higher cost. 
B) Provide the same amount of pollution abatement at a lower cost. 
C) Provide the same amount of pollution abatement at the same cost. 
D) Be inefficient.

Question 7

All of the following can be costs of environmental cleanup except

Accepted Answer

A) Scarce resources being used that then cannot be used to produce other goods. 
B) The replacement costs of machinery that causes pollution. 
C) Layoffs of workers in polluting industries. 
D) Fewer hospital visits. 
A) Scarce resources being used that then cannot be used to produce other goods. 
B) The replacement costs of machinery that causes pollution. 
C) Layoffs of workers in polluting industries. 
D) Fewer hospital visits.

Question 8

The marginal cost of reducing pollution

Accepted Answer

A) Rises as the environment gets cleaner. 
B) Falls as the environment gets cleaner. 
C) Is constant. 
D) Is not an issue in determining the optimal rate of pollution. 
A) Rises as the environment gets cleaner. 
B) Falls as the environment gets cleaner. 
C) Is constant. 
D) Is not an issue in determining the optimal rate of pollution.

Question 9

There are opportunity costs associated with reducing pollution.

Accepted Answer

A) True 
 B)False

Question 10

Under the market mechanism,a market characterized by external costs will produce too

Accepted Answer

A) Little output and too much pollution. 
B) Much output and too much pollution. 
C) Little output and too little pollution. 
D) Much output and too little pollution. 
A) Little output and too much pollution. 
B) Much output and too much pollution. 
C) Little output and too little pollution. 
D) Much output and too little pollution.

Question 11

Thermal pollution is brought about by the discharge of

Accepted Answer

A) Sulfur dioxide. 
B) Steam or heated water. 
C) Carbon dioxide. 
D) Solid waste. 
A) Sulfur dioxide. 
B) Steam or heated water. 
C) Carbon dioxide. 
D) Solid waste.

Question 12

The pricing of environmental damage because of pollution is difficult because of intangible losses.

Accepted Answer

A) True 
 B)False

Question 13

An In the News article is titled "Air Pollution Kills." From a social perspective,this suggests that

Accepted Answer

A) Businesses usually consider the social implications of their production processes. 
B) There is no market failure since the polluting firms are producing desirable goods. 
C) Too much output is being produced by the polluting firms. 
D) Too little output is being produced by the polluting firms. 
A) Businesses usually consider the social implications of their production processes. 
B) There is no market failure since the polluting firms are producing desirable goods. 
C) Too much output is being produced by the polluting firms. 
D) Too little output is being produced by the polluting firms.

Question 14

If the social costs of an economic activity are $200 and the private costs are $200,then the external costs of the activity are ________,and market failure ________.

Accepted Answer

A) $0;does not occur 
B) $400;does not occur 
C) $0;occurs 
D) $400;occurs 
A) $0;does not occur 
B) $400;does not occur 
C) $0;occurs 
D) $400;occurs

Question 15

A completely successful emission charge would

Accepted Answer

A) Shift the private MC curve until the curve intersects with price at zero output and pollution is completely eliminated. 
B) Shift the private MC curve to the same position as the social MC curve. 
C) Shift the social MC curve to the same position as the private MC curve. 
D) Not shift either the private or social MC curve. 
A) Shift the private MC curve until the curve intersects with price at zero output and pollution is completely eliminated. 
B) Shift the private MC curve to the same position as the social MC curve. 
C) Shift the social MC curve to the same position as the private MC curve. 
D) Not shift either the private or social MC curve.

Question 16

An In the News article is titled "Study Finds Net Gain from Pollution Rules." The optimal amount of pollution,from an economic perspective,

Accepted Answer

A) Occurs where the price equals the social marginal revenue. 
B) Is zero pollution. 
C) Is the rate that reduces pollution costs but does not result in externalities. 
D) Occurs where the social marginal benefit of pollution control equals the social marginal cost. 
A) Occurs where the price equals the social marginal revenue. 
B) Is zero pollution. 
C) Is the rate that reduces pollution costs but does not result in externalities. 
D) Occurs where the social marginal benefit of pollution control equals the social marginal cost.

Question 17

A five-cent container deposit on bottles

Accepted Answer

A) Decreases the incentive to recycle. 
B) Increases the incentive to recycle. 
C) Makes it more profitable for firms to use these containers. 
D) Encourages pollution. 
A) Decreases the incentive to recycle. 
B) Increases the incentive to recycle. 
C) Makes it more profitable for firms to use these containers. 
D) Encourages pollution.

Question 18

Pollution abatement does not impose opportunity costs on society because a decrease in pollution is desirable.

Accepted Answer

A) True 
 B)False

Question 19

The United Nations Intergovernmental Panel on Climate Change said that evidence is now unequivocal that humans are causing global warming.

Accepted Answer

A) True 
 B)False

Question 20

The Clean Air Acts of 1970 and 1990 reduced pollution through

Accepted Answer

A) Market incentives. 
B) Command-and-control regulatory standards. 
C) Privatization. 
D) Emission charges. 
A) Market incentives. 
B) Command-and-control regulatory standards. 
C) Privatization. 
D) Emission charges.

Exam 28: Environmental Protection

An example of a negative externality in consumption is

In Figure 28.1,if pollution costs are external,the rate of output will be

From an economic standpoint,the pursuit of a zero-pollution environment is

If those who cause pollution are expected to bear its burden,then the price of automobiles should increase to cover the cost of antipollution devices.

Only ________ percent of the U.S.population is served by a system of sewers and adequate water treatment plants.

Tradable pollution permits,when compared to command-and-control options,tend to

All of the following can be costs of environmental cleanup except

The marginal cost of reducing pollution

There are opportunity costs associated with reducing pollution.

Under the market mechanism,a market characterized by external costs will produce too

Thermal pollution is brought about by the discharge of

The pricing of environmental damage because of pollution is difficult because of intangible losses.

An In the News article is titled "Air Pollution Kills." From a social perspective,this suggests that

If the social costs of an economic activity are $200 and the private costs are $200,then the external costs of the activity are ________,and market failure ________.

A completely successful emission charge would

An In the News article is titled "Study Finds Net Gain from Pollution Rules." The optimal amount of pollution,from an economic perspective,

A five-cent container deposit on bottles

Pollution abatement does not impose opportunity costs on society because a decrease in pollution is desirable.

The United Nations Intergovernmental Panel on Climate Change said that evidence is now unequivocal that humans are causing global warming.

The Clean Air Acts of 1970 and 1990 reduced pollution through

Economics: the Core Issues

The Useconomy: a Global View

Supply and Demand

The Role of Government

National Income Accounting

Unemployment

Inflation

The Business Cycle

Aggregate Demand

Self-Adjustment or Instability

Fiscal Policy

Deficits and Debt

Money and Banks

The Federal Reserve System

Monetary Policy

Supply-Side Policy: Short-Run Options

Growth and Productivity: Long-Run Possibilities

Theory Versus Reality

Consumer Choice

Elasticity

The Costs of Production

The Competitive Firm

Competitive Markets

Monopoly

Oligopoly

Monopolistic Competition

Natural Monopolies: Deregulation

The Farm Problem

The Labor Market

Labor Unions

Financial Markets

Taxes: Equity Versus Efficiency

Transfer Payments: Welfare and Social Security

International Trade

International Finance

Global Poverty

Filters

If the social costs of an economic activity are $200 and the private costs are $200,then the external costs of the activity are ,and market failure .