Question 1

A system of tradable air pollution permits has the advantage of

Accepted Answer

A) reducing the total amount of air pollution. 
B) eliminating all environmental liability for participating polluters. 
C) rewarding efficient abatement effort at the expense of inefficient abatement efforts. 
D) ensuring that the goal amount of abatement occurs at the lowest social cost. 
A) reducing the total amount of air pollution. 
B) eliminating all environmental liability for participating polluters. 
C) rewarding efficient abatement effort at the expense of inefficient abatement efforts. 
D) ensuring that the goal amount of abatement occurs at the lowest social cost.

Question 2

The Clean Air Act of 1992 focused on

Accepted Answer

A) greenhouse gases. 
B) acid rain. 
C) the ozone layer. 
D) smog. 
A) greenhouse gases. 
B) acid rain. 
C) the ozone layer. 
D) smog.

Question 3

A tax on a polluting activity could internalize the externality if it were set equal to the

Accepted Answer

A) average cost of the pollution. 
B) marginal cost of the pollution. 
C) total cost of the pollution. 
D) moral cost of the pollution 
A) average cost of the pollution. 
B) marginal cost of the pollution. 
C) total cost of the pollution. 
D) moral cost of the pollution

Question 4

The act of weighing the long run use of limited natural resources is called

Accepted Answer

A) stewardship. 
B) gamesmanship. 
C) brinksmanship. 
D) fostering. 
A) stewardship. 
B) gamesmanship. 
C) brinksmanship. 
D) fostering.

Question 5

A person using a high discount rate is going to consider the concept of sustainability

Accepted Answer

A) as wise. 
B) as unwisely focusing on the present. 
C) as overly weighting the future. 
D) just a fancy term oil and gas companies use to argue for increased rights to drill. 
A) as wise. 
B) as unwisely focusing on the present. 
C) as overly weighting the future. 
D) just a fancy term oil and gas companies use to argue for increased rights to drill.

Question 6

Using present value analysis, an economist will argue that we do not have to worry about loggers harvesting young trees on private land.

Accepted Answer

A) Because it is more profitable for them to let the young trees grow. 
B) Because it is not profitable for them to engage in any logging. 
C) Because logging companies do not attempt to maximize profit. 
D) Because young tree have no market value. 
A) Because it is more profitable for them to let the young trees grow. 
B) Because it is not profitable for them to engage in any logging. 
C) Because logging companies do not attempt to maximize profit. 
D) Because young tree have no market value.

Question 7

The Clean Water Act has

Accepted Answer

A) succeeded in getting every body of water in the U.S. to acceptably clean levels. 
B) succeeded in getting no body of water in the U.S. to acceptably clean levels. 
C) succeeded in getting many bodies of water in the US to acceptably clean levels. 
D) made things worse because more bodies of water are unsafe now than before the law was passed. 
A) succeeded in getting every body of water in the U.S. to acceptably clean levels. 
B) succeeded in getting no body of water in the U.S. to acceptably clean levels. 
C) succeeded in getting many bodies of water in the US to acceptably clean levels. 
D) made things worse because more bodies of water are unsafe now than before the law was passed.

Question 8

Carbon monoxide in the air is _____ than its 1975 level.

Accepted Answer

A) 67% less 
B) 3% less 
C) 3% more 
D) 25% more 
A) 67% less 
B) 3% less 
C) 3% more 
D) 25% more

Question 9

The economic explanation that is given by Nobel laureate economist Ronald Coase for why community property is polluted more often that private property is that

Accepted Answer

A) damaging community property indirectly affects individuals' wealth whereas damaging private property directly affects their wealth. 
B) damaging private property indirectly affects individuals' wealth whereas damaging community property directly affects their wealth. 
C) people are not made aware of their actions toward community property. 
D) people ignore what is not right in front of them. 
A) damaging community property indirectly affects individuals' wealth whereas damaging private property directly affects their wealth. 
B) damaging private property indirectly affects individuals' wealth whereas damaging community property directly affects their wealth. 
C) people are not made aware of their actions toward community property. 
D) people ignore what is not right in front of them.

Question 10

Compared to the situation existing when the Kyoto Protocols were created,

Accepted Answer

A) India actually produces less greenhouse gasses (GHG) 
B) the U.S. Senate finally approved the treaty under pressure from President Bush 
C) the U.S. is producing less greenhouse gasses (GHG)than it had promised 
D) China produces two and one-half times more greenhouse gasses (GHG) 
A) India actually produces less greenhouse gasses (GHG) 
B) the U.S. Senate finally approved the treaty under pressure from President Bush 
C) the U.S. is producing less greenhouse gasses (GHG)than it had promised 
D) China produces two and one-half times more greenhouse gasses (GHG)

Question 11

Lead in the air is _____ than its 1975 level.

Accepted Answer

A) 99% less 
B) 3% less 
C) 3% more 
D) 97% more 
A) 99% less 
B) 3% less 
C) 3% more 
D) 97% more

Question 12

If it costs Con Ed approximately $20 per additional ton of air pollution abated, but it costs PG&E only $10 per additional ton of air pollution abated and a marketable pollution permit trades for $14 per ton,

Accepted Answer

A) PG&E could gain by buying and Con Ed could gain by selling. 
B) society would gain if PG&E would sell and Con Ed would buy. 
C) both PG&E and Con Ed could gain by buying. 
D) both PG&E and Con Ed could gain by selling. 
A) PG&E could gain by buying and Con Ed could gain by selling. 
B) society would gain if PG&E would sell and Con Ed would buy. 
C) both PG&E and Con Ed could gain by buying. 
D) both PG&E and Con Ed could gain by selling.

Question 13

Economists refer to the problem that exists when public property is treated poorly because it is in no one's private interest to protect it as the

Accepted Answer

A) tragedy of capitalism. 
B) tragedy of the commons. 
C) Achilles' heel of socialism. 
D) mistake of zoning. 
A) tragedy of capitalism. 
B) tragedy of the commons. 
C) Achilles' heel of socialism. 
D) mistake of zoning.

Question 14

Which of the following environmental problems is among the most easily solved?

Accepted Answer

A) waste water treatment 
B) a nation's air pollution issues 
C) a nation's coastal water pollution issues 
D) the world's global warming issues 
A) waste water treatment 
B) a nation's air pollution issues 
C) a nation's coastal water pollution issues 
D) the world's global warming issues

Question 15

The average global temperature rose

Accepted Answer

A) 1 degree F in the last 100 years. 
B) 3-5 degrees F in the last 100 years. 
C) 15 degrees F in the last 100 years. 
D) 3-5 degrees in the last 10 years. 
A) 1 degree F in the last 100 years. 
B) 3-5 degrees F in the last 100 years. 
C) 15 degrees F in the last 100 years. 
D) 3-5 degrees in the last 10 years.

Question 16

The Endangered Species Act has

Accepted Answer

A) succeeded in that there are no endangered species to be concerned about in the US. 
B) succeeded marginally in that 33 of the more than 1200 endangered species now have stable populations. 
C) failed in that no species of plant or animal is better off now than when the law was passed. 
D) made things worse because it allows more species to become extinct. 
A) succeeded in that there are no endangered species to be concerned about in the US. 
B) succeeded marginally in that 33 of the more than 1200 endangered species now have stable populations. 
C) failed in that no species of plant or animal is better off now than when the law was passed. 
D) made things worse because it allows more species to become extinct.

Question 17

If it costs Con Ed approximately $26 per additional ton of air pollution abated, but it costs PG&E only $18 per additional ton of air pollution abated, the two companies could both benefit from trading a marketable pollution permit at any price between

Accepted Answer

A) $0 per ton and $18 per ton. 
B) $0 per ton and $26 per ton. 
C) $18 per ton and $26 per ton. 
D) $26 per ton and $36 per ton. 
A) $0 per ton and $18 per ton. 
B) $0 per ton and $26 per ton. 
C) $18 per ton and $26 per ton. 
D) $26 per ton and $36 per ton.

Question 18

Economists see the greenhouse effect as

Accepted Answer

A) having both negative and positive economic impacts. 
B) having only positive economic consequences. 
C) having only negative economic consequences. 
D) having no economic consequences. 
A) having both negative and positive economic impacts. 
B) having only positive economic consequences. 
C) having only negative economic consequences. 
D) having no economic consequences.

Question 19

-In Figure 23.1 for a good with no externality, which area represents consumer surplus to the consumer?

Accepted Answer

A) AP*C 
B) 0ACQ* 
C) 0BCQ* 
D) 0P*CQ* 
A) AP*C 
B) 0ACQ* 
C) 0BCQ* 
D) 0P*CQ*

Question 20

Compared to the situation existing when the Kyoto Protocols were created,

Accepted Answer

A) India produces twice as much greenhouse gasses (GHG) 
B) the U.S. Senate finally approved the treaty under pressure from President Bush 
C) the U.S. is producing less greenhouse gasses (GHG)than it had promised 
D) China actually produces less greenhouse gasses (GHG) 
A) India produces twice as much greenhouse gasses (GHG) 
B) the U.S. Senate finally approved the treaty under pressure from President Bush 
C) the U.S. is producing less greenhouse gasses (GHG)than it had promised 
D) China actually produces less greenhouse gasses (GHG)

Exam 23: Natural Resources, the Environment, and Climate Change

A system of tradable air pollution permits has the advantage of

The Clean Air Act of 1992 focused on

A tax on a polluting activity could internalize the externality if it were set equal to the

The act of weighing the long run use of limited natural resources is called

A person using a high discount rate is going to consider the concept of sustainability

Using present value analysis, an economist will argue that we do not have to worry about loggers harvesting young trees on private land.

The Clean Water Act has

Carbon monoxide in the air is _____ than its 1975 level.

The economic explanation that is given by Nobel laureate economist Ronald Coase for why community property is polluted more often that private property is that

Compared to the situation existing when the Kyoto Protocols were created,

Lead in the air is _____ than its 1975 level.

If it costs Con Ed approximately $20 per additional ton of air pollution abated, but it costs PG&E only $10 per additional ton of air pollution abated and a marketable pollution permit trades for $14 per ton,

Economists refer to the problem that exists when public property is treated poorly because it is in no one's private interest to protect it as the

Which of the following environmental problems is among the most easily solved?

The average global temperature rose

The Endangered Species Act has

If it costs Con Ed approximately $26 per additional ton of air pollution abated, but it costs PG&E only $18 per additional ton of air pollution abated, the two companies could both benefit from trading a marketable pollution permit at any price between

Economists see the greenhouse effect as

-In Figure 23.1 for a good with no externality, which area represents consumer surplus to the consumer?

Compared to the situation existing when the Kyoto Protocols were created,

Economics: the Study of Opportunity Cost

Supply and Demand

The Concept of Elasticity and Consumer and Producer Surplus

Firm Production, Cost, and Revenue

Perfect Competition, Monopoly, and Economic Versus Normal Profit

Every Macroeconomic Word You Ever Heard: Gross Domestic Product, Inflation, Unemployment, Recession, Depression

Interest Rates and Present Value

Aggregate Demand and Aggregate Supply

Fiscal Policy

Monetary Policy

Federal Spending

Federal Deficits, Surpluses, and the National Debt

The Housing Bubble

The Recession of 2007-2009: Causes and Policy Responses

Is Economic Stagnation the New Normal

Is the Fiscalsky Falling: An Examination of Unfunded Social Security, Medicare, and State and Local Pension Liabilities

International Trade: Does It Jeopardize American Jobs

International Finance and Exchange Rates

The European Debt Crisis

Economic Growth and Development

Nafta, Gatt, Wto: Are Trade Agreements Good for Us

The Line Between Legal and Illegal Goods

Health Care

Government-Provided Health Insurance: Medicaid, Medicare, and the Child Health Insurance Program

The Economics of Prescription Drugs

So You Want to Be a Lawyer: Economics and the Law

The Economics of Crime

Antitrust

The Economics of Race and Discrimination

Income and Wealth Inequality

Farm Policy

Minimum Wage

Ticket Brokers and Ticket Scalping

Rent Control

Economics of K-12 Education

Economics of College and University Education

Poverty and Welfare

Head Start

Social Security

Personal Income Taxes

Energy Prices

If We Build It, Will They Come and Other Sports Questions

The Stock Market Crashes

Unions

Walmart: Always Low Prices and Low Wages- Always

The Economic Impact of Casino Gambling

The Economics of Terrorism

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