Question 1

Under the emissions trading scheme,if lots of firms introduce emissions curbing technologies,the demand for permits:

Accepted Answer

A) might decrease and the firms' costs fall, while industry will expand, but the emissions will stay under the allowed cap. 
B) might increase and their price fall increasing the costs to firms. 
C) might decrease and their price rise leading to reduced output by the industry. 
D) might increase and their price rise, resulting in lower costs to the firms and increased output by the industry. 
A) might decrease and the firms' costs fall, while industry will expand, but the emissions will stay under the allowed cap. 
B) might increase and their price fall increasing the costs to firms. 
C) might decrease and their price rise leading to reduced output by the industry. 
D) might increase and their price rise, resulting in lower costs to the firms and increased output by the industry.

Question 2

Which of the following statements is true?

Accepted Answer

A) The super profits tax is the same as a royalty. 
B) The super profits tax charges a different rate depending on the elasticity of the good or service. 
C) The super profits tax is imposed only on imported goods. 
D) The super profits tax allows government to compensate mineral producers if they make losses. 
A) The super profits tax is the same as a royalty. 
B) The super profits tax charges a different rate depending on the elasticity of the good or service. 
C) The super profits tax is imposed only on imported goods. 
D) The super profits tax allows government to compensate mineral producers if they make losses.

Question 3

Emissions trading schemes require government to set the appropriate level of carbon tax

Accepted Answer

A) True 
 B)False

Question 4

Exhibit 10-3 Price and demand for permits data
  
-In Exhibit 10-3,if the 'cap' is set at 80 permits,the resulting market price of permits is:

Accepted Answer

A) $60. 
B) $30. 
C) $40. 
D) $10. 
A) $60. 
B) $30. 
C) $40. 
D) $10.

Question 5

A New South Wales government subsidized the installation of household solar rooftop generators at the cost of:

Accepted Answer

A) $520-$640 per household. 
B) $52-$64 per tonne of carbon reduced. 
C) $20-$40 per tonne of carbon reduced. 
D) $520-$640 per tonne of carbon reduced. 
A) $520-$640 per household. 
B) $52-$64 per tonne of carbon reduced. 
C) $20-$40 per tonne of carbon reduced. 
D) $520-$640 per tonne of carbon reduced.

Question 6

Exhibit 10-3 Price and demand for permits data
  
-In Exhibit 10-3,if the 'cap' is set at 80 permits,and the demand for the permits decreased by 20 units at each price level,the resulting price of permits is equal to:

Accepted Answer

A) $50. 
B) $30. 
C) $10. 
D) $20 
A) $50. 
B) $30. 
C) $10. 
D) $20

Question 7

Exhibit 10-3 Price and demand for permits data
  
-In Exhibit 10-3,if the 'cap' is set at 100 permits,the resulting market price of permits is:

Accepted Answer

A) $50. 
B) $10. 
C) $100. 
D) $20. 
A) $50. 
B) $10. 
C) $100. 
D) $20.

Question 8

Which of the following statements is true?

Accepted Answer

A) The reduced demand for permits would increase their price. 
B) The reduced demand for permits would shift the industry supply curve for carbon intensive output to the left. 
C) The increased demand for permits would increase firms' costs and shift the supply curve for carbon intensive outputs to the left. 
D) The reduced demand for permits would lower their price, lower firms' costs, and shift the industry supply curve for carbon intensive outputs to the right. 
A) The reduced demand for permits would increase their price. 
B) The reduced demand for permits would shift the industry supply curve for carbon intensive output to the left. 
C) The increased demand for permits would increase firms' costs and shift the supply curve for carbon intensive outputs to the left. 
D) The reduced demand for permits would lower their price, lower firms' costs, and shift the industry supply curve for carbon intensive outputs to the right.

Question 9

Which of the following is not a policy solution to reduce emissions?

Accepted Answer

A) Carbon tax. 
B) Regulation. 
C) Emissions trading. 
D) Income tax. 
A) Carbon tax. 
B) Regulation. 
C) Emissions trading. 
D) Income tax.

Question 10

Which of the following statements is most likely to be true?

Accepted Answer

A) The RSPT has a lower tax rate than the MRRT. 
B) The Minerals Resource Rent Tax has no benefits to the economy. 
C) Most of the industries have to pay the MRRT. 
D) The MRRT has lower rates than the RSPT. 
A) The RSPT has a lower tax rate than the MRRT. 
B) The Minerals Resource Rent Tax has no benefits to the economy. 
C) Most of the industries have to pay the MRRT. 
D) The MRRT has lower rates than the RSPT.

Question 11

Mineral royalties are:

Accepted Answer

A) subsidies to the mining companies to continue to operate in Australia. 
B) payment from the government to the extractive industries to operate. 
C) payment by firms to the government for minerals extracted from the ground. 
D) savings by mining companies that can be used for exploration. 
A) subsidies to the mining companies to continue to operate in Australia. 
B) payment from the government to the extractive industries to operate. 
C) payment by firms to the government for minerals extracted from the ground. 
D) savings by mining companies that can be used for exploration.

Question 12

Exhibit 10-2 Carbon emissions as an externality
  
-In Exhibit 10-2,what is the quantity of carbon intensive outputs if the supply is 'Supply 1'?

Accepted Answer

A) 60. 
B) 40. 
C) 20. 
D) 80. 
A) 60. 
B) 40. 
C) 20. 
D) 80.

Question 13

Australian governments have argued that:

Accepted Answer

A) Australia should not focus on climate change issues as it is a minor issue for Australia. 
B) Australia should address the climate change issues even if other countries are unwilling to do so. 
C) Australia should address the poverty issues first. 
D) Australia should address the climate change issues only when other countries are willing to do the same. 
A) Australia should not focus on climate change issues as it is a minor issue for Australia. 
B) Australia should address the climate change issues even if other countries are unwilling to do so. 
C) Australia should address the poverty issues first. 
D) Australia should address the climate change issues only when other countries are willing to do the same.

Question 14

Suppose a new emissions reducing production technology is installed.The price of emissions permits will:

Accepted Answer

A) increase due to the decrease in demand for permits. 
B) reduce due to the increase in demand for permits. 
C) increase due to the increase in demand for permits. 
D) reduce due to the decrease in demand for permits. 
A) increase due to the decrease in demand for permits. 
B) reduce due to the increase in demand for permits. 
C) increase due to the increase in demand for permits. 
D) reduce due to the decrease in demand for permits.

Question 15

A reduction in royalties can be expected to:

Accepted Answer

A) decrease the output of the nation. 
B) increase employment. 
C) decrease employment. 
D) have no impact on market. 
A) decrease the output of the nation. 
B) increase employment. 
C) decrease employment. 
D) have no impact on market.

Question 16

Which of the following statements is true?

Accepted Answer

A) A coal mining company is a price taker in the world market. 
B) The average total cost curve of mineral producers is horizontal, reflecting the world market. 
C) None of Australia's mineral output is sold in open markets. 
D) Ten per cent of Australia's mining output is exported to the rest of the world. 
A) A coal mining company is a price taker in the world market. 
B) The average total cost curve of mineral producers is horizontal, reflecting the world market. 
C) None of Australia's mineral output is sold in open markets. 
D) Ten per cent of Australia's mining output is exported to the rest of the world.

Question 17

An example of a policy that is not designed to reduce the output of the activity creating the negative externality is a:

Accepted Answer

A) congestion charge. 
B) policy that restricts the fishing activity. 
C) competition policy. 
D) policy that creates property rights. 
A) congestion charge. 
B) policy that restricts the fishing activity. 
C) competition policy. 
D) policy that creates property rights.

Question 18

Economists prefer:

Accepted Answer

A) regulation to solve the problem of emissions. 
B) emissions trading schemes to regulation. 
C) the political agenda to control the level of emissions. 
D) government to prescribe the technology to be used for emissions reduction. 
A) regulation to solve the problem of emissions. 
B) emissions trading schemes to regulation. 
C) the political agenda to control the level of emissions. 
D) government to prescribe the technology to be used for emissions reduction.

Question 19

Exhibit 10-2 Carbon emissions as an externality
  
-In Exhibit 10-2,what is the price of carbon intensive outputs if the supply is 'Supply 1'?

Accepted Answer

A) $30. 
B) $40. 
C) $50. 
D) $20. 
A) $30. 
B) $40. 
C) $50. 
D) $20.

Question 20

Exhibit 10-4 The market for permits
  
-In Exhibit 10-4,if the demand for permits is 'Demand 2',the price of permits is equal to:

Accepted Answer

A) $50. 
B) $30. 
C) $20. 
D) $10. 
A) $50. 
B) $30. 
C) $20. 
D) $10.

Under the emissions trading scheme,if lots of firms introduce emissions curbing technologies,the demand for permits:

Which of the following statements is true?

Emissions trading schemes require government to set the appropriate level of carbon tax

Exhibit 10-3 Price and demand for permits data -In Exhibit 10-3,if the 'cap' is set at 80 permits,the resulting market price of permits is:

A New South Wales government subsidized the installation of household solar rooftop generators at the cost of:

Exhibit 10-3 Price and demand for permits data -In Exhibit 10-3,if the 'cap' is set at 80 permits,and the demand for the permits decreased by 20 units at each price level,the resulting price of permits is equal to:

Exhibit 10-3 Price and demand for permits data -In Exhibit 10-3,if the 'cap' is set at 100 permits,the resulting market price of permits is:

Which of the following statements is true?

Which of the following is not a policy solution to reduce emissions?

Which of the following statements is most likely to be true?

Mineral royalties are:

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,what is the quantity of carbon intensive outputs if the supply is 'Supply 1'?

Australian governments have argued that:

Suppose a new emissions reducing production technology is installed.The price of emissions permits will:

A reduction in royalties can be expected to:

Which of the following statements is true?

An example of a policy that is not designed to reduce the output of the activity creating the negative externality is a:

Economists prefer:

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,what is the price of carbon intensive outputs if the supply is 'Supply 1'?

Exhibit 10-4 The market for permits -In Exhibit 10-4,if the demand for permits is 'Demand 2',the price of permits is equal to:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters

Exam 10: Policy issues: resource taxes and climate change

Under the emissions trading scheme,if lots of firms introduce emissions curbing technologies,the demand for permits:

Which of the following statements is true?

Emissions trading schemes require government to set the appropriate level of carbon tax

Exhibit 10-3 Price and demand for permits data -In Exhibit 10-3,if the 'cap' is set at 80 permits,the resulting market price of permits is:

A New South Wales government subsidized the installation of household solar rooftop generators at the cost of:

Exhibit 10-3 Price and demand for permits data -In Exhibit 10-3,if the 'cap' is set at 80 permits,and the demand for the permits decreased by 20 units at each price level,the resulting price of permits is equal to:

Exhibit 10-3 Price and demand for permits data -In Exhibit 10-3,if the 'cap' is set at 100 permits,the resulting market price of permits is:

Which of the following statements is true?

Which of the following is not a policy solution to reduce emissions?

Which of the following statements is most likely to be true?

Mineral royalties are:

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,what is the quantity of carbon intensive outputs if the supply is 'Supply 1'?

Australian governments have argued that:

Suppose a new emissions reducing production technology is installed.The price of emissions permits will:

A reduction in royalties can be expected to:

Which of the following statements is true?

An example of a policy that is not designed to reduce the output of the activity creating the negative externality is a:

Economists prefer:

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,what is the price of carbon intensive outputs if the supply is 'Supply 1'?

Exhibit 10-4 The market for permits -In Exhibit 10-4,if the demand for permits is 'Demand 2',the price of permits is equal to:

Thinking like an economist

Production possibilities and opportunity cost

Market demand and supply

Markets in action

Elasticity of demand and supply

Production costs

Perfect competition

Monopoly

Monopolistic competition and oligopoly

Measuring the size of the economy

Business cycles and economic growth

Inflation and unemployment

A simple model of the macro economy

The monetary and financial system

Macroeconomic policy I: monetary policy

Macroeconomic policy II: fiscal policy

International trade and finance

Applying graphs to economics

Filters