Question 1

The industry supply curve typically:

Accepted Answer

A) includes all costs including social costs. 
B) does not include the external costs. 
C) only includes external costs. 
D) includes internal and external costs. 
A) includes all costs including social costs. 
B) does not include the external costs. 
C) only includes external costs. 
D) includes internal and external costs.

Question 2

The super profits tax was:

Accepted Answer

A) announced, discussed and debated in 2010 with the mineral industry strongly objecting the tax in many countries. 
B) announced, discussed and debated in 2010 with the Australian mineral industry strongly supporting the tax. 
C) announced, discussed and debated in 2010 with the Australian mineral industry strongly objecting to the tax. 
D) adopted in 2010 while the Australian mineral industry was readily supporting the tax. 
A) announced, discussed and debated in 2010 with the mineral industry strongly objecting the tax in many countries. 
B) announced, discussed and debated in 2010 with the Australian mineral industry strongly supporting the tax. 
C) announced, discussed and debated in 2010 with the Australian mineral industry strongly objecting to the tax. 
D) adopted in 2010 while the Australian mineral industry was readily supporting the tax.

Question 3

The emissions trading scheme is often called a:

Accepted Answer

A) 'less is better' scheme. 
B) 'buy and sell' scheme. 
C) 'cap and trade' scheme. 
D) 'ceiling and cap' scheme. 
A) 'less is better' scheme. 
B) 'buy and sell' scheme. 
C) 'cap and trade' scheme. 
D) 'ceiling and cap' scheme.

Question 4

If the cap in Exhibit 10-4 increased to 50 permits,the resulting price given 'Demand 1' will be:

Accepted Answer

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

Question 5

The mining output sold by Australian firms:

Accepted Answer

A) does not have much competition in other countries. 
B) competes with heterogeneous output from other suppliers from other countries. 
C) competes with output from other suppliers from other countries in markets lacking essential information. 
D) competes with almost homogenous output from other suppliers from other countries. 
A) does not have much competition in other countries. 
B) competes with heterogeneous output from other suppliers from other countries. 
C) competes with output from other suppliers from other countries in markets lacking essential information. 
D) competes with almost homogenous output from other suppliers from other countries.

Question 6

Which of the following statements is true?

Accepted Answer

A) The resource profits have declined in the past 10 years. 
B) Rising mineral prices during the resources boom created a larger share of profits for mining firms but a smaller share of the net proceeds to all Australians. 
C) Mineral royalties keep pace with the rising profitability of mining firms. 
D) The resource taxes and royalties as a share of resource profits have increased in the past 10 years. 
A) The resource profits have declined in the past 10 years. 
B) Rising mineral prices during the resources boom created a larger share of profits for mining firms but a smaller share of the net proceeds to all Australians. 
C) Mineral royalties keep pace with the rising profitability of mining firms. 
D) The resource taxes and royalties as a share of resource profits have increased in the past 10 years.

Question 7

Climate change is:

Accepted Answer

A) long-term changes in the world's climate. 
B) short-term changes in the world's climate. 
C) long-term changes in the local climate. 
D) short-term changes in the local climate. 
A) long-term changes in the world's climate. 
B) short-term changes in the world's climate. 
C) long-term changes in the local climate. 
D) short-term changes in the local climate.

Question 8

Economists prefer:

Accepted Answer

A) the emissions trading over regulation. 
B) the emissions trading with regulation. 
C) regulation over the emissions trading. 
D) regulation over the carbon tax. 
A) the emissions trading over regulation. 
B) the emissions trading with regulation. 
C) regulation over the emissions trading. 
D) regulation over the carbon tax.

Question 9

One of the criticisms of the super profits tax was that:

Accepted Answer

A) the tax would encourage more firms to enter the industry. 
B) the tax would increase industry output. 
C) the tax would restrict industry output. 
D) the tax would restrict demand. 
A) the tax would encourage more firms to enter the industry. 
B) the tax would increase industry output. 
C) the tax would restrict industry output. 
D) the tax would restrict demand.

Question 10

Which of the following is not supported by economists to combat the problem of climate change?

Accepted Answer

A) Carbon tax to reduce emissions. 
B) Emissions trading scheme. 
C) 'Cap and trade' scheme. 
D) Heavy subsidies for green energy technologies like wind and solar. 
A) Carbon tax to reduce emissions. 
B) Emissions trading scheme. 
C) 'Cap and trade' scheme. 
D) Heavy subsidies for green energy technologies like wind and solar.

Question 11

The royalties:

Accepted Answer

A) reduce the output. 
B) increase the incentive for firms to produce more. 
C) shift the industry supply curve to the right. 
D) increase the quality of mining production. 
A) reduce the output. 
B) increase the incentive for firms to produce more. 
C) shift the industry supply curve to the right. 
D) increase the quality of mining production.

Question 12

A decrease in the resources super profits tax should:

Accepted Answer

A) increase employment and decrease output. 
B) increase employment and increase output. 
C) decrease employment and decrease output. 
D) decrease employment and increase output. 
A) increase employment and decrease output. 
B) increase employment and increase output. 
C) decrease employment and decrease output. 
D) decrease employment and increase output.

Question 13

The Australian government was proposing to introduce a super profits tax and to:

Accepted Answer

A) double a progressive income tax. 
B) abolish company tax. 
C) neutralise the effect of royalties. 
D) mitigate a proportional income tax. 
A) double a progressive income tax. 
B) abolish company tax. 
C) neutralise the effect of royalties. 
D) mitigate a proportional income tax.

Question 14

Regulation can encourage firms to:

Accepted Answer

A) introduce processes that reduce emissions per unit of output more than without the regulation. 
B) increase the output because firms have limited competition. 
C) increase emissions as their output declines. 
D) adopt emissions intensive technologies. 
A) introduce processes that reduce emissions per unit of output more than without the regulation. 
B) increase the output because firms have limited competition. 
C) increase emissions as their output declines. 
D) adopt emissions intensive technologies.

Question 15

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 10 units at each price level,the resulting price of permits is equal to:

Accepted Answer

A) $50. 
B) $30. 
C) $10. 
D) $40 
A) $50. 
B) $30. 
C) $10. 
D) $40

Question 16

The revenue from the carbon tax:

Accepted Answer

A) could be used to fund more hospitals. 
B) could be used to fully compensate those damaged by the pollution. 
C) could be used to fully compensate those who are paying the carbon tax. 
D) could be used to make industries more competitive internationally. 
A) could be used to fund more hospitals. 
B) could be used to fully compensate those damaged by the pollution. 
C) could be used to fully compensate those who are paying the carbon tax. 
D) could be used to make industries more competitive internationally.

Question 17

If the price is $100 per tone and the government raises the royalties from $10 per tonne to $20 per tonne,then the marginal revenue of mining company is likely to:

Accepted Answer

A) decrease from $90 to $80 per tonne. 
B) remain unchanged. 
C) increase from $80 to $90 per tonne. 
D) increase from $100 to $110 per tonne. 
A) decrease from $90 to $80 per tonne. 
B) remain unchanged. 
C) increase from $80 to $90 per tonne. 
D) increase from $100 to $110 per tonne.

Question 18

If the pollution control costs are low but the carbon tax is high,firms are encouraged to:

Accepted Answer

A) pay the carbon tax. 
B) install pollution control equipment. 
C) sell their inventories at lower prices. 
D) increase production. 
A) pay the carbon tax. 
B) install pollution control equipment. 
C) sell their inventories at lower prices. 
D) increase production.

Question 19

The super profits tax was a successful tax implemented by the Rudd government.

Accepted Answer

A) True 
 B)False

Question 20

Once the social cost of emissions is included in the price,the firms will reduce their production and will charge a higher price.

Accepted Answer

A) True 
 B)False

The industry supply curve typically:

The super profits tax was:

The emissions trading scheme is often called a:

If the cap in Exhibit 10-4 increased to 50 permits,the resulting price given 'Demand 1' will be:

The mining output sold by Australian firms:

Which of the following statements is true?

Climate change is:

Economists prefer:

One of the criticisms of the super profits tax was that:

Which of the following is not supported by economists to combat the problem of climate change?

The royalties:

A decrease in the resources super profits tax should:

The Australian government was proposing to introduce a super profits tax and to:

Regulation can encourage firms to:

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 10 units at each price level,the resulting price of permits is equal to:

The revenue from the carbon tax:

If the price is $100 per tone and the government raises the royalties from $10 per tonne to $20 per tonne,then the marginal revenue of mining company is likely to:

If the pollution control costs are low but the carbon tax is high,firms are encouraged to:

The super profits tax was a successful tax implemented by the Rudd government.

Once the social cost of emissions is included in the price,the firms will reduce their production and will charge a higher price.

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

The industry supply curve typically:

The super profits tax was:

The emissions trading scheme is often called a:

If the cap in Exhibit 10-4 increased to 50 permits,the resulting price given 'Demand 1' will be:

The mining output sold by Australian firms:

Which of the following statements is true?

Climate change is:

Economists prefer:

One of the criticisms of the super profits tax was that:

Which of the following is not supported by economists to combat the problem of climate change?

The royalties:

A decrease in the resources super profits tax should:

The Australian government was proposing to introduce a super profits tax and to:

Regulation can encourage firms to:

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 10 units at each price level,the resulting price of permits is equal to:

The revenue from the carbon tax:

If the price is $100 per tone and the government raises the royalties from $10 per tonne to $20 per tonne,then the marginal revenue of mining company is likely to:

If the pollution control costs are low but the carbon tax is high,firms are encouraged to:

The super profits tax was a successful tax implemented by the Rudd government.

Once the social cost of emissions is included in the price,the firms will reduce their production and will charge a higher price.

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