Exam 18: The Economics of the Environment

Which of the following statements is true?

The government has direct control over pollution control strategies under the environmental policy of:

Economists examine pollution from the perspective of the preferences of people.

The marginal cost curve for pollution emissions is upward sloping.

Emissions taxes are an example of the _______ approach to correcting pollution problems.

The efficient level of pollution occurs where the marginal benefit of pollution equals the marginal cost of pollution.

Marketable pollution permits reduce pollution by:

If a government determines how much and how a polluter must adjust emissions, it is using:

Whenever human activity produces a sufficient concentration of a substance in the environment to cause harm to people or to resources valued by people, the result is:

The efficient level of pollution is achieved by eliminating all pollution from the environment.

Pollution implies scarcity.

Although water pollution has been easily controlled since 1980, air pollution remains unchanged.

Efforts made to influence the choices of people by appealing to their sense of values are called:

The most widely used regulatory approach to environmental pollution is:

The marginal benefit of pollution emissions _______ as the quantity of pollution emissions _______ .

Moral suasion is the most widely accepted approach to environmental problems by economists.

The marginal benefit from pollution _______ as the quantity of pollution emissions _______.

As the quantity of pollution emissions per period rises, the marginal cost of pollution rises.

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) The demand for emissions curve is a _______ curve.

The efficient level of pollution occurs where the marginal benefit of pollution is less than the marginal cost of pollution.