Question 1

Exhibit 10-1
  
-According to Exhibit 10-1,if the price is $300 per tonne and the royalty is $100 per tonne,then the:

Accepted Answer

A) marginal revenue will be between $200 and $300 per tonne. 
B) marginal revenue will be $200 not $300 per tonne. 
C) marginal revenue will be less than $150 per tonne. 
D) marginal revenue will be $300 per tonne. 
A) marginal revenue will be between $200 and $300 per tonne. 
B) marginal revenue will be $200 not $300 per tonne. 
C) marginal revenue will be less than $150 per tonne. 
D) marginal revenue will be $300 per tonne.

Question 2

Government used the super profits tax revenue to restructure the out-of-date industries.

Accepted Answer

A) True 
 B)False

Question 3

An alternative approach to carbon tax is:

Accepted Answer

A) resource super profits tax. 
B) income tax. 
C) exchange. 
D) regulation. 
A) resource super profits tax. 
B) income tax. 
C) exchange. 
D) regulation.

Question 4

The Minerals Resource Rent Tax is best described as:

Accepted Answer

A) a tax applied to all mines and which is taxed at the same rate as the original super profits tax. 
B) a tax applied to more mines and which is taxed at a lower rate than the original super profits tax. 
C) a tax applied to all sectors of the economy and which is taxed at a lower rate than the original super profits tax. 
D) a tax applied to fewer mines and which is taxed at a lower rate than the original super profits tax. 
A) a tax applied to all mines and which is taxed at the same rate as the original super profits tax. 
B) a tax applied to more mines and which is taxed at a lower rate than the original super profits tax. 
C) a tax applied to all sectors of the economy and which is taxed at a lower rate than the original super profits tax. 
D) a tax applied to fewer mines and which is taxed at a lower rate than the original super profits tax.

Question 5

If the external costs of carbon emissions were included in the industry supply curve:

Accepted Answer

A) the supply curve would shift to the right decreasing the price and increasing the output. 
B) the supply curve would shift to the left increasing the price and increasing the output. 
C) the supply curve would shift to the left increasing the price and reducing the output. 
D) the supply curve would shift to the right increasing the price and reducing the output. 
A) the supply curve would shift to the right decreasing the price and increasing the output. 
B) the supply curve would shift to the left increasing the price and increasing the output. 
C) the supply curve would shift to the left increasing the price and reducing the output. 
D) the supply curve would shift to the right increasing the price and reducing the output.

Question 6

Exhibit 10-2 Carbon emissions as an externality
  
-In Exhibit 10-2,assume that firms are required to pay tax of $30 per unit of carbon intensive outputs.Further assume that the initial supply curve was 'Supply 1'.What is the socially desirable outcome?

Accepted Answer

A) 40 units of carbon intensive outputs at the price of $30. 
B) 40 units of carbon intensive outputs at the price of $40. 
C) 70 units of carbon intensive outputs at the price of $40. 
D) 80 units of carbon intensive outputs at the price of $20. 
A) 40 units of carbon intensive outputs at the price of $30. 
B) 40 units of carbon intensive outputs at the price of $40. 
C) 70 units of carbon intensive outputs at the price of $40. 
D) 80 units of carbon intensive outputs at the price of $20.

Question 7

The _____________ is described by Treasury as a super profit:

Accepted Answer

A) total revenue. 
B) marginal profit. 
C) total profit. 
D) economic profit. 
A) total revenue. 
B) marginal profit. 
C) total profit. 
D) economic profit.

Question 8

The absence of the external costs of carbon emissions in the price of electricity means that:

Accepted Answer

A) firms produce electricity accounting for the global warming. 
B) firms produce electricity equal to what is socially desirable. 
C) firms produce more electricity than is socially desirable. 
D) firms produce less electricity than is socially desirable. 
A) firms produce electricity accounting for the global warming. 
B) firms produce electricity equal to what is socially desirable. 
C) firms produce more electricity than is socially desirable. 
D) firms produce less electricity than is socially desirable.

Question 9

The carbon tax has to be set at the ________ level.

Accepted Answer

A) high 
B) correct 
C) low 
D) fair 
A) high 
B) correct 
C) low 
D) fair

Question 10

The upper limit to allowable emissions is called:

Accepted Answer

A) cap. 
B) ceiling. 
C) unacceptable level of emissions. 
D) lowest level of emissions. 
A) cap. 
B) ceiling. 
C) unacceptable level of emissions. 
D) lowest level of emissions.

Question 11

Exhibit 10-1
  
-According to Exhibit 10-1,if the international price is MRp and the royalty is $100 per tonne,the profit will be:

Accepted Answer

A) $21,000. 
B) $12,000. 
C) $3,000. 
D) $700. 
A) $21,000. 
B) $12,000. 
C) $3,000. 
D) $700.

Question 12

Economists prefer an emissions trading scheme to other carbon reduction measures because:

Accepted Answer

A) an ETS requires continuous government intervention. 
B) such as scheme achieves the highest emissions reduction price per tonne of carbon. 
C) such a scheme gives all parties involved more flexibility and more control over their own decisions. 
D) they don't trust government to make the right decisions. 
A) an ETS requires continuous government intervention. 
B) such as scheme achieves the highest emissions reduction price per tonne of carbon. 
C) such a scheme gives all parties involved more flexibility and more control over their own decisions. 
D) they don't trust government to make the right decisions.

Question 13

The climate change issue involves:

Accepted Answer

A) no externalities. 
B) neutral externalities. 
C) negative externalities. 
D) positive externalities. 
A) no externalities. 
B) neutral externalities. 
C) negative externalities. 
D) positive externalities.

Question 14

Chapter 10 of the textbook refers to 'ETS' as:

Accepted Answer

A) Enterprise Technology Services 
B) Energy Transfer System. 
C) Edmonton Transit System. 
D) Emissions Trading Scheme. 
A) Enterprise Technology Services 
B) Energy Transfer System. 
C) Edmonton Transit System. 
D) Emissions Trading Scheme.

Question 15

Firms wanting to emit carbon dioxide have to:

Accepted Answer

A) buy emissions permits. 
B) sell emissions permits. 
C) stop production. 
D) exit the industry. 
A) buy emissions permits. 
B) sell emissions permits. 
C) stop production. 
D) exit the industry.

Question 16

If there were a total of 1000 permits and firm A owned 200 of those permits.Then firm A is allowed to emit:

Accepted Answer

A) 20% of total emissions of firm A 
B) 80% of total emissions of firm A 
C) 80% of total emissions allowed by the cap. 
D)  20% of total emissions allowed by the cap. 
A) 20% of total emissions of firm A 
B) 80% of total emissions of firm A 
C) 80% of total emissions allowed by the cap. 
D)  20% of total emissions allowed by the cap.

Question 17

The most important contributor to climate change is:

Accepted Answer

A) Carbon dioxide (SO2). 
B) Sulphur dioxide (CO2). 
C) Carton dioxide (KO2). 
D) Carbon dioxide (CO2). 
A) Carbon dioxide (SO2). 
B) Sulphur dioxide (CO2). 
C) Carton dioxide (KO2). 
D) Carbon dioxide (CO2).

Question 18

The recession would cause:

Accepted Answer

A) an increase in demand, a decrease in industry output, reduced emissions and a reduced demand for emissions permits. 
B) a decrease in demand, a decrease in industry output, increased emissions and an increased demand for emissions permits. 
C) a decrease in demand, a decrease in industry output, reduced emissions and a reduced demand for emissions permits. 
D) a decrease in demand, a decrease in industry output, increased emissions and a reduced demand for emissions permits. 
A) an increase in demand, a decrease in industry output, reduced emissions and a reduced demand for emissions permits. 
B) a decrease in demand, a decrease in industry output, increased emissions and an increased demand for emissions permits. 
C) a decrease in demand, a decrease in industry output, reduced emissions and a reduced demand for emissions permits. 
D) a decrease in demand, a decrease in industry output, increased emissions and a reduced demand for emissions permits.

Question 19

Exhibit 10-2 Carbon emissions as an externality
  
-In Exhibit 10-2,if the external cost is not included in the supply curve 'Supply 1',the market demand and market supply curve 'Supply 1' produce a/an:

Accepted Answer

A) socially desirable outcome. 
B) efficient outcome. 
C) inefficient outcome. 
D) better outcome than an intersection of market demand and Supply 2. 
A) socially desirable outcome. 
B) efficient outcome. 
C) inefficient outcome. 
D) better outcome than an intersection of market demand and Supply 2.

Question 20

If the price is $100 per tonne and the royalty is $10 per tonne,the marginal revenue of the mineral producer will be:

Accepted Answer

A) $90 for each tonne produced. 
B) $90 for each tonne sold. 
C) $110 for each tonne sold. 
D) $100 for each tonne produced. 
A) $90 for each tonne produced. 
B) $90 for each tonne sold. 
C) $110 for each tonne sold. 
D) $100 for each tonne produced.

Exhibit 10-1 -According to Exhibit 10-1,if the price is $300 per tonne and the royalty is $100 per tonne,then the:

Government used the super profits tax revenue to restructure the out-of-date industries.

An alternative approach to carbon tax is:

The Minerals Resource Rent Tax is best described as:

If the external costs of carbon emissions were included in the industry supply curve:

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,assume that firms are required to pay tax of $30 per unit of carbon intensive outputs.Further assume that the initial supply curve was 'Supply 1'.What is the socially desirable outcome?

The _____________ is described by Treasury as a super profit:

The absence of the external costs of carbon emissions in the price of electricity means that:

The carbon tax has to be set at the ________ level.

The upper limit to allowable emissions is called:

Exhibit 10-1 -According to Exhibit 10-1,if the international price is MRp and the royalty is $100 per tonne,the profit will be:

Economists prefer an emissions trading scheme to other carbon reduction measures because:

The climate change issue involves:

Chapter 10 of the textbook refers to 'ETS' as:

Firms wanting to emit carbon dioxide have to:

If there were a total of 1000 permits and firm A owned 200 of those permits.Then firm A is allowed to emit:

The most important contributor to climate change is:

The recession would cause:

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,if the external cost is not included in the supply curve 'Supply 1',the market demand and market supply curve 'Supply 1' produce a/an:

If the price is $100 per tonne and the royalty is $10 per tonne,the marginal revenue of the mineral producer will be:

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

Exhibit 10-1 -According to Exhibit 10-1,if the price is $300 per tonne and the royalty is $100 per tonne,then the:

Government used the super profits tax revenue to restructure the out-of-date industries.

An alternative approach to carbon tax is:

The Minerals Resource Rent Tax is best described as:

If the external costs of carbon emissions were included in the industry supply curve:

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,assume that firms are required to pay tax of $30 per unit of carbon intensive outputs.Further assume that the initial supply curve was 'Supply 1'.What is the socially desirable outcome?

The _____________ is described by Treasury as a super profit:

The absence of the external costs of carbon emissions in the price of electricity means that:

The carbon tax has to be set at the ________ level.

The upper limit to allowable emissions is called:

Exhibit 10-1 -According to Exhibit 10-1,if the international price is MRp and the royalty is $100 per tonne,the profit will be:

Economists prefer an emissions trading scheme to other carbon reduction measures because:

The climate change issue involves:

Chapter 10 of the textbook refers to 'ETS' as:

Firms wanting to emit carbon dioxide have to:

If there were a total of 1000 permits and firm A owned 200 of those permits.Then firm A is allowed to emit:

The most important contributor to climate change is:

The recession would cause:

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,if the external cost is not included in the supply curve 'Supply 1',the market demand and market supply curve 'Supply 1' produce a/an:

If the price is $100 per tonne and the royalty is $10 per tonne,the marginal revenue of the mineral producer will be:

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