Question 1

Replacement of a system of per-tonne royalties with a super profits tax would result in:

Accepted Answer

A) less industry output, more firms staying in the industry and more firms entering the industry. 
B) more industry output, less firms staying in the industry and more firms entering the industry. 
C) more industry output, more firms staying in the industry and more firms entering the industry. 
D) less industry output, less firms staying in the industry and less firms entering the industry. 
A) less industry output, more firms staying in the industry and more firms entering the industry. 
B) more industry output, less firms staying in the industry and more firms entering the industry. 
C) more industry output, more firms staying in the industry and more firms entering the industry. 
D) less industry output, less firms staying in the industry and less firms entering the industry.

Question 2

Looking at Exhibit 10-4,suppose that there is a slowdown in the economy.That might lead to:

Accepted Answer

A) an increase in demand for carbon intensive outputs. 
B) a decrease in demand for carbon production. 
C) an increase in demand for emissions. 
D) a decrease in demand for carbon intensive outputs. 
A) an increase in demand for carbon intensive outputs. 
B) a decrease in demand for carbon production. 
C) an increase in demand for emissions. 
D) a decrease in demand for carbon intensive outputs.

Question 3

Regulation is the best solution to climate change issues.

Accepted Answer

A) True 
 B)False

Question 4

The level of tax on profits suggested in the government's super profits tax proposal was:

Accepted Answer

A) 30%. 
B) 70%. 
C) 40%. 
D) 10%. 
A) 30%. 
B) 70%. 
C) 40%. 
D) 10%.

Question 5

Which of the following statements is true?

Accepted Answer

A) A 'cap and trade' scheme is beneficial to consumers because more goods are produced. 
B) A new emissions reducing production technology will increase the price of emissions permits. 
C) A 'cap and trade' scheme has a fixed price for emissions permits. 
D) A decrease in demand for permits reduces the equilibrium price of permits. 
A) A 'cap and trade' scheme is beneficial to consumers because more goods are produced. 
B) A new emissions reducing production technology will increase the price of emissions permits. 
C) A 'cap and trade' scheme has a fixed price for emissions permits. 
D) A decrease in demand for permits reduces the equilibrium price of permits.

Question 6

The resource companies operate in a/an:

Accepted Answer

A) duopoly market. 
B) monopoly market. 
C) almost perfectly competitive market. 
D) kinked demand curve market. 
A) duopoly market. 
B) monopoly market. 
C) almost perfectly competitive market. 
D) kinked demand curve market.

Question 7

Exhibit 10-2 Carbon emissions as an externality
  
-Assume that the private supply is 'Supply 1' and the supply including tax is 'Supply 2' (Exhibit 10-2).What is the price increase (at the equilibrium level)after the carbon tax was imposed?

Accepted Answer

A) $10. 
B) $30. 
C) $40. 
D) $20. 
A) $10. 
B) $30. 
C) $40. 
D) $20.

Question 8

Exhibit 10-2 Carbon emissions as an externality
  
-In Exhibit 10-2,the market demand curve 'Demand' and market supply curve 'Supply 1' establish a:

Accepted Answer

A) socially desirable level of emissions. 
B) market equilibrium. 
C) regulated output. 
D) price and quantity of external costs. 
A) socially desirable level of emissions. 
B) market equilibrium. 
C) regulated output. 
D) price and quantity of external costs.

Question 9

A super profits tax is a tax on the economic profits of the firm.

Accepted Answer

A) True 
 B)False

Question 10

The estimates of prices for a permit to emit one tonne of carbon followed by the introduction of a 'cap and trade' scheme have been:

Accepted Answer

A) less than $50 per tonne of carbon reduced. 
B) less than $500 per tonne of carbon reduced. 
C) less than $50 per household. 
D) less than $5 per tonne of carbon reduced. 
A) less than $50 per tonne of carbon reduced. 
B) less than $500 per tonne of carbon reduced. 
C) less than $50 per household. 
D) less than $5 per tonne of carbon reduced.

Question 11

Exhibit 10-2 Carbon emissions as an externality
  
-Assume that the private supply is 'Supply 1' and the supply including carbon tax is 'Supply 2' (Exhibit 10-2).What is the level of carbon tax imposed?

Accepted Answer

A) $10. 
B) $30. 
C) $40. 
D) $20. 
A) $10. 
B) $30. 
C) $40. 
D) $20.

Question 12

Emissions trading scheme is:

Accepted Answer

A) a scheme involving trading in emissions (tonnes). 
B) the scheme adopted by Barack Obama. 
C) a part of game theory looking at interactions of the polluters and consumers. 
D) a government scheme requiring emitters to buy emissions permits. 
A) a scheme involving trading in emissions (tonnes). 
B) the scheme adopted by Barack Obama. 
C) a part of game theory looking at interactions of the polluters and consumers. 
D) a government scheme requiring emitters to buy emissions permits.

Question 13

The climate change problem involves:

Accepted Answer

A) international participation, the positive externality and various policy options. 
B) international participation, the negative externality and only one policy option such as carbon tax. 
C) international participation, the negative externality and only voluntary agreements among producers. 
D) international participation, the negative externality and various policy options. 
A) international participation, the positive externality and various policy options. 
B) international participation, the negative externality and only one policy option such as carbon tax. 
C) international participation, the negative externality and only voluntary agreements among producers. 
D) international participation, the negative externality and various policy options.

Question 14

If the per-tonne royalty is in place,then the profit maximising firm will reduce output.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is correct?

Accepted Answer

A) A per-tonne royalty in place results in a lower level of output, whereas a super profits tax results in more tax revenue. 
B) A per-tonne royalty in place results in a higher level of output, whereas a super profits tax results in more tax revenue. 
C) A per-tonne royalty in place results in a lower level of output, whereas a super profits tax results in less tax revenue. 
D) A per-tonne royalty in place results in a lower level of emissions, whereas a super profits tax results in less output. 
A) A per-tonne royalty in place results in a lower level of output, whereas a super profits tax results in more tax revenue. 
B) A per-tonne royalty in place results in a higher level of output, whereas a super profits tax results in more tax revenue. 
C) A per-tonne royalty in place results in a lower level of output, whereas a super profits tax results in less tax revenue. 
D) A per-tonne royalty in place results in a lower level of emissions, whereas a super profits tax results in less output.

Question 16

The ad valorem royalties are preferred to the flat rate royalties because:

Accepted Answer

A) they are estimated at an accelerated rate. 
B) they are easier to calculate. 
C) they create more revenue to the government. 
D) they reflect the change in the value of the mineral. 
A) they are estimated at an accelerated rate. 
B) they are easier to calculate. 
C) they create more revenue to the government. 
D) they reflect the change in the value of the mineral.

Question 17

The Carbon Pollution Reduction Scheme (CPRS)was authored by:

Accepted Answer

A) Kevin Rudd. 
B) Barack Obama. 
C) Bill Clinton. 
D) Ross Garnaut. 
A) Kevin Rudd. 
B) Barack Obama. 
C) Bill Clinton. 
D) Ross Garnaut.

Question 18

The external cost of carbon emissions is not included in the market supply curve of private firms.

Accepted Answer

A) True 
 B)False

Question 19

Exhibit 10-4 The market for permits
  
-In Exhibit 10-4,if the demand for permits is 'Demand 1',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.

Question 20

If prices fall to be equal to minimum ATC the firm:

Accepted Answer

A) will shut down under a super tax regime. 
B) will reduce its production under a super tax regime. 
C) will continue to produce under a royalties regime in the long run. 
D) will continue to produce under a super tax regime. 
A) will shut down under a super tax regime. 
B) will reduce its production under a super tax regime. 
C) will continue to produce under a royalties regime in the long run. 
D) will continue to produce under a super tax regime.

Replacement of a system of per-tonne royalties with a super profits tax would result in:

Looking at Exhibit 10-4,suppose that there is a slowdown in the economy.That might lead to:

Regulation is the best solution to climate change issues.

The level of tax on profits suggested in the government's super profits tax proposal was:

Which of the following statements is true?

The resource companies operate in a/an:

Exhibit 10-2 Carbon emissions as an externality -Assume that the private supply is 'Supply 1' and the supply including tax is 'Supply 2' (Exhibit 10-2).What is the price increase (at the equilibrium level)after the carbon tax was imposed?

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,the market demand curve 'Demand' and market supply curve 'Supply 1' establish a:

A super profits tax is a tax on the economic profits of the firm.

The estimates of prices for a permit to emit one tonne of carbon followed by the introduction of a 'cap and trade' scheme have been:

Exhibit 10-2 Carbon emissions as an externality -Assume that the private supply is 'Supply 1' and the supply including carbon tax is 'Supply 2' (Exhibit 10-2).What is the level of carbon tax imposed?

Emissions trading scheme is:

The climate change problem involves:

If the per-tonne royalty is in place,then the profit maximising firm will reduce output.

Which of the following is correct?

The ad valorem royalties are preferred to the flat rate royalties because:

The Carbon Pollution Reduction Scheme (CPRS)was authored by:

The external cost of carbon emissions is not included in the market supply curve of private firms.

Exhibit 10-4 The market for permits -In Exhibit 10-4,if the demand for permits is 'Demand 1',the price of permits is equal to:

If prices fall to be equal to minimum ATC the firm:

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

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Exam 10: Policy issues: resource taxes and climate change

Replacement of a system of per-tonne royalties with a super profits tax would result in:

Looking at Exhibit 10-4,suppose that there is a slowdown in the economy.That might lead to:

Regulation is the best solution to climate change issues.

The level of tax on profits suggested in the government's super profits tax proposal was:

Which of the following statements is true?

The resource companies operate in a/an:

Exhibit 10-2 Carbon emissions as an externality -Assume that the private supply is 'Supply 1' and the supply including tax is 'Supply 2' (Exhibit 10-2).What is the price increase (at the equilibrium level)after the carbon tax was imposed?

Exhibit 10-2 Carbon emissions as an externality -In Exhibit 10-2,the market demand curve 'Demand' and market supply curve 'Supply 1' establish a:

A super profits tax is a tax on the economic profits of the firm.

The estimates of prices for a permit to emit one tonne of carbon followed by the introduction of a 'cap and trade' scheme have been:

Exhibit 10-2 Carbon emissions as an externality -Assume that the private supply is 'Supply 1' and the supply including carbon tax is 'Supply 2' (Exhibit 10-2).What is the level of carbon tax imposed?

Emissions trading scheme is:

The climate change problem involves:

If the per-tonne royalty is in place,then the profit maximising firm will reduce output.

Which of the following is correct?

The ad valorem royalties are preferred to the flat rate royalties because:

The Carbon Pollution Reduction Scheme (CPRS)was authored by:

The external cost of carbon emissions is not included in the market supply curve of private firms.

Exhibit 10-4 The market for permits -In Exhibit 10-4,if the demand for permits is 'Demand 1',the price of permits is equal to:

If prices fall to be equal to minimum ATC the firm:

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