Question 1

Rising prices will discourage consumption and encourage conservation.

Accepted Answer

A) True 
 B)False

Question 2

Taking advantage of the built-in-loophole in emission taxes implies

Accepted Answer

A) opportunity to save on taxes by reducing emissions. 
B) opportunity to avoid taxes even without cutting emissions. 
C) opportunity to increase emission by paying more tax. 
D) opportunity to pay less by increasing emission. 
A) opportunity to save on taxes by reducing emissions. 
B) opportunity to avoid taxes even without cutting emissions. 
C) opportunity to increase emission by paying more tax. 
D) opportunity to pay less by increasing emission.

Question 3

Water quality in the United States has ____ in the past 25 years.

Accepted Answer

A) improved 
B) worsened 
C) remained unchanged 
D) improved slightly before a recent deterioration 
A) improved 
B) worsened 
C) remained unchanged 
D) improved slightly before a recent deterioration

Question 4

Even if demand for a resource grows over time, ever-rising prices of the resource that result from its growing scarcity still discourage consumption.

Accepted Answer

A) True 
 B)False

Question 5

Centrally planned economies are able to cope with environmental pollution issues
much better than capitalist countries.

Accepted Answer

A) True 
 B)False

Question 6

An unexpected discovery of a new mineral deposit will cause the

Accepted Answer

A) demand curve to shift outward. 
B) demand curve to shift inward. 
C) supply curve to shift outward. 
D) supply curve to shift inward. 
A) demand curve to shift outward. 
B) demand curve to shift inward. 
C) supply curve to shift outward. 
D) supply curve to shift inward.

Question 7

Direct controls are generally much more costly than emissions taxes because

Accepted Answer

A) under direct controls emissions cutbacks are usually not apportioned among the firms on the basis of their ability to reduce pollution cheaply and efficiently. 
B) emissions tax per unit of output is higher than the per-unit direct control program cost. 
C) government cannot legally levy emissions taxes that are as high. 
D) firms disregard emissions taxes. 
A) under direct controls emissions cutbacks are usually not apportioned among the firms on the basis of their ability to reduce pollution cheaply and efficiently. 
B) emissions tax per unit of output is higher than the per-unit direct control program cost. 
C) government cannot legally levy emissions taxes that are as high. 
D) firms disregard emissions taxes.

Question 8

Which of the following would not lead to more conservation?

Accepted Answer

A) higher prices for a resource 
B) increased interest rates on bonds 
C) public awareness of increasing scarcity 
D) higher taxes on goods produced using the resource 
A) higher prices for a resource 
B) increased interest rates on bonds 
C) public awareness of increasing scarcity 
D) higher taxes on goods produced using the resource

Question 9

Recycling rates for aluminum, paper, and glass have been increasing in the United States.

Accepted Answer

A) True 
 B)False

Question 10

Most prophecies of the imminent exhaustion of many natural resources have not come true because

Accepted Answer

A) such resources are generally available in infinite quantities. 
B) rising prices for resources have stimulated supply and encouraged innovation. 
C) the demand for most natural resources has fallen as income levels have increased. 
D) government price floors have prevented resource exhaustion. 
A) such resources are generally available in infinite quantities. 
B) rising prices for resources have stimulated supply and encouraged innovation. 
C) the demand for most natural resources has fallen as income levels have increased. 
D) government price floors have prevented resource exhaustion.

Question 11

Requiring all firms to reduce emissions by the same percentage is

Accepted Answer

A) impossible. 
B) inefficient. 
C) inequitable. 
D) unenforceable under the law. 
A) impossible. 
B) inefficient. 
C) inequitable. 
D) unenforceable under the law.

Question 12

Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.

Accepted Answer

A) True 
 B)False

Question 13

What is true of depletable resources is that

Accepted Answer

A) increasing scarcity leads to their total disappearance. 
B) they are depleted by gradually using up the supply of homogeneous resources, every unit of which is equally available. 
C) generally the most accessible and cheapest sources are used up so that new supplies become more costly. 
D) their prices must rise at the average rate of inflation. 
A) increasing scarcity leads to their total disappearance. 
B) they are depleted by gradually using up the supply of homogeneous resources, every unit of which is equally available. 
C) generally the most accessible and cheapest sources are used up so that new supplies become more costly. 
D) their prices must rise at the average rate of inflation.

Question 14

Under EPA regulations, a factory

Accepted Answer

A) must pay for the right to pollute. 
B) can increase air pollution from its grinding process if it decreases air pollution from its smelting process. 
C) cannot under any circumstances build a polluting factory in an area where pollution standards are not being met by existing firms. 
D) None of the above is correct. 
A) must pay for the right to pollute. 
B) can increase air pollution from its grinding process if it decreases air pollution from its smelting process. 
C) cannot under any circumstances build a polluting factory in an area where pollution standards are not being met by existing firms. 
D) None of the above is correct.

Question 15

If the price of garbage removal rises, people will

Accepted Answer

A) demand a lesser quantity of garbage removal. 
B) take more waste to recycling centers. 
C) repair broken items rather than throwing them out. 
D) All of the above are correct. 
A) demand a lesser quantity of garbage removal. 
B) take more waste to recycling centers. 
C) repair broken items rather than throwing them out. 
D) All of the above are correct.

Question 16

Environmental problems occur exclusively in capitalist economies.

Accepted Answer

A) True 
 B)False

Question 17

Recycling in the United States in recent years

Accepted Answer

A) has decreased in spite of increased rates for common recycling materials. 
B) has remained unchanged, and increased raes for recycling may help. 
C) has increased with increased rates for recycling mterials. 
D) has increased with no help from increased fees for recycling materials. 
A) has decreased in spite of increased rates for common recycling materials. 
B) has remained unchanged, and increased raes for recycling may help. 
C) has increased with increased rates for recycling mterials. 
D) has increased with no help from increased fees for recycling materials.

Question 18

The Army Corps of Engineers has been accused of acting on the basis of a so-called "edifice complex."

Accepted Answer

A) True 
 B)False

Question 19

Under a system of financial penalties for polluters:

Accepted Answer

A) Firms could pollute all they wanted to. 
B) Firms would have to pay a tax for each unit of pollution created. 
C) Firms would be encouraged to pollute less. 
D) All of the above are correct. 
A) Firms could pollute all they wanted to. 
B) Firms would have to pay a tax for each unit of pollution created. 
C) Firms would be encouraged to pollute less. 
D) All of the above are correct.

Question 20

The advantages of emissions permits over taxes is/are:

Accepted Answer

A) it reduces undertainty about the quantity of pollution that will be emitted. 
B) environmental authorities decide on an emissions ceiling in advance of issuing permits. 
C) pollutants can be limited to levels which do not affect health. 
D) All of the above are correct. 
A) it reduces undertainty about the quantity of pollution that will be emitted. 
B) environmental authorities decide on an emissions ceiling in advance of issuing permits. 
C) pollutants can be limited to levels which do not affect health. 
D) All of the above are correct.

Exam 16: Externalities, the Environment, and Natural Resources

Rising prices will discourage consumption and encourage conservation.

Taking advantage of the built-in-loophole in emission taxes implies

Water quality in the United States has ____ in the past 25 years.

Even if demand for a resource grows over time, ever-rising prices of the resource that result from its growing scarcity still discourage consumption.

Centrally planned economies are able to cope with environmental pollution issues much better than capitalist countries.

An unexpected discovery of a new mineral deposit will cause the

Direct controls are generally much more costly than emissions taxes because

Which of the following would not lead to more conservation?

Recycling rates for aluminum, paper, and glass have been increasing in the United States.

Most prophecies of the imminent exhaustion of many natural resources have not come true because

Requiring all firms to reduce emissions by the same percentage is

Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.

What is true of depletable resources is that

Under EPA regulations, a factory

If the price of garbage removal rises, people will

Environmental problems occur exclusively in capitalist economies.

Recycling in the United States in recent years

The Army Corps of Engineers has been accused of acting on the basis of a so-called "edifice complex."

Under a system of financial penalties for polluters:

The advantages of emissions permits over taxes is/are:

What Is Economics

The Economy: Myth and Reality

The Fundamental Economic Problem: Scarcity and Choice

Supply and Demand: an Initial Look

Consumer Choice: Individual and Market Demand

Demand and Elasticity

Production, Inputs, and Cost: Building Blocks for Supply Analysis

Output, Price, and Profit: the Importance of Marginal Analysis

Securities: Business Finance and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power: Regulation and Antitrust

The Case for Free Markets: the Price System

The Shortcomings of Free Markets

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: the Human Inputs

Poverty, Inequality, and Discrimination

Is Useconomic Leadership Threatened

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation

Bringing in the Supply Side: Unemployment and Inflation

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

He Financial Crisis and the Great Recession

The Debate Over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off Between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder

Exchange Rates and the Macroeconomy

Filters