Exam 16: Externalities, Externaliteis, the Environment, and Natural Resources

In North Carolina, a car must pass an emissions test before it can be registered. The emissions test costs $20 per car. This system is an example of

A pollution tax penalizes inefficient firms.

Voluntary programs for reducing pollution

Interest in environmental problems has intensified, perhaps because

Price controls on resources generally lead to surpluses.

One advantage about an emissions permit system is that

Steps taken to clean the environment may lead to

Direct controls work only if the legal system imposes substantial penalties on violators.

An unexpected discovery of a new mineral deposit will cause the

The effectiveness of direct controls on pollution depends on: (i)the budgets and enthusiasm of the regulatory bodies; (ii)sufficiently strong statutory penalties.

The socialist countries of Eastern Europe have

Rising prices will discourage consumption and encourage conservation.

Price controls would ordinarily be used to increase rather than decrease prices of depletable resources.

The use of pollution charges to reduce pollution confronts the problem of

Statistical studies suggest that the cost of direct controls for any target level of pollution is

Which of the following environmental approaches is most appropriate when surveillance and enforcement is impractical?

When society relies on voluntarism to resolve environmental problems it

The British economist A. C. Pigou did not do which of the following?

Depletable resource prices change over time depending on

Unregulated markets will tend to