Question 1

According to many economists, the role of government activity in the area of pollution is to:

Accepted Answer

A)  reduce the level of emissions as far as possible. 
B)  achieve the least-cost way of reducing the level of emissions. 
C)  achieve the efficient level of pollution by reducing the costs of pollution, which will always increase the benefits to society. 
D)  reduce emissions whenever the marginal cost exceeds a predetermined level set by the courts. 
A)  reduce the level of emissions as far as possible. 
B)  achieve the least-cost way of reducing the level of emissions. 
C)  achieve the efficient level of pollution by reducing the costs of pollution, which will always increase the benefits to society. 
D)  reduce emissions whenever the marginal cost exceeds a predetermined level set by the courts.

Question 2

Efforts made to influence the behavior of people by appealing to their sense of values are called moral suasion.

Accepted Answer

A) True 
 B)False

Question 3

Use the following to answer question(s): Pollution Abatement and Emissions
  
-(Exhibit: Pollution Abatement and Emissions) If the level of emissions is R, then efficiency is achieved by:

Accepted Answer

A)  not changing the level of emissions. 
B)  decreasing abatement efforts. 
C)  increasing abatement efforts. 
D)  decreasing the level of emissions. 
A)  not changing the level of emissions. 
B)  decreasing abatement efforts. 
C)  increasing abatement efforts. 
D)  decreasing the level of emissions.

Question 4

Use the following to answer question(s): Pollution Abatement and Emissions
  
-(Exhibit: Pollution Abatement and Emissions) If the level of emissions is S, then the marginal cost of:

Accepted Answer

A)  abatement is greater than the marginal cost of emissions. 
B)  abatement and the marginal benefit of abatement are equal. 
C)  abatement is less than the marginal cost of emissions. 
D)  emissions is zero. 
A)  abatement is greater than the marginal cost of emissions. 
B)  abatement and the marginal benefit of abatement are equal. 
C)  abatement is less than the marginal cost of emissions. 
D)  emissions is zero.

Question 5

As the price per unit of pollution emissions _______ , the total quantity demanded of pollution emissions _______ .

Accepted Answer

A)  rises; rises 
B)  rises; stays the same 
C)  falls; falls 
D)  falls; rises 
A)  rises; rises 
B)  rises; stays the same 
C)  falls; falls 
D)  falls; rises

Question 6

Use the following to answer question(s): Efficiency and Pollution
  
-(Exhibit: Efficiency and Pollution) An efficient solution takes place at a price of _______ and a quantity of _______ .

Accepted Answer

A)  $5; 40 
B)  $15; 30 
C)  $25; 30 
D)  $15; 15 
A)  $5; 40 
B)  $15; 30 
C)  $25; 30 
D)  $15; 15

Question 7

The marginal benefit curve for emitting pollutants can be read from _______ to________ as the ________ of ________ pollution.

Accepted Answer

A)  right; left; opportunity cost; incremental 
B)  left; right; marginal cost; abating 
C)  right; left; marginal cost; abating 
D)  left to right; result; exponentially increasing 
A)  right; left; opportunity cost; incremental 
B)  left; right; marginal cost; abating 
C)  right; left; marginal cost; abating 
D)  left to right; result; exponentially increasing

Question 8

According to the Case in Point titled "Estimating a Demand Curve for Environmental Quantity," economists constructed such a demand curve by analyzing the market for:

Accepted Answer

A)  real estate. 
B)  automobiles. 
C)  heavy machinery. 
D)  agricultural goods. 
A)  real estate. 
B)  automobiles. 
C)  heavy machinery. 
D)  agricultural goods.

Question 9

Use the following to answer question(s): Pollution Abatement and Emissions
  
-(Exhibit: Pollution Abatement and Emissions) Curve A can be read from right to left as the marginal cost of:

Accepted Answer

A)  resources curve. 
B)  opportunities curve. 
C)  pollution curve. 
D)  abatement curve. 
A)  resources curve. 
B)  opportunities curve. 
C)  pollution curve. 
D)  abatement curve.

Question 10

The government attempts to reduce the global warming effects caused by the burning of fossil fuels such as oil, coal, and natural gas by establishing a minimum level of fuel efficiency on new cars.The regulatory approach used in this action is:

Accepted Answer

A)  a tax. 
B)  command and control. 
C)  moral suasion. 
D)  a marketable permit. 
A)  a tax. 
B)  command and control. 
C)  moral suasion. 
D)  a marketable permit.

Question 11

Use the following to answer question(s): Pollution Abatement and Emissions
  
-(Exhibit: Pollution Abatement and Emissions) If the level of emissions is S, then efficiency is achieved by:

Accepted Answer

A)  increasing the level of emissions. 
B)  decreasing the level of emissions. 
C)  increasing abatement efforts. 
D)  keeping the level of emissions the same. 
A)  increasing the level of emissions. 
B)  decreasing the level of emissions. 
C)  increasing abatement efforts. 
D)  keeping the level of emissions the same.

Question 12

Which of the following statements is true?

Accepted Answer

A)  Pollution is unrelated to the concept of scarcity. 
B)  Pollution is not considered a cost in market capitalist systems. 
C)  The existence of pollution implies that environmental resources have alternative uses. 
D)  Activities that create pollution do not generate a benefit from society's perspective. 
A)  Pollution is unrelated to the concept of scarcity. 
B)  Pollution is not considered a cost in market capitalist systems. 
C)  The existence of pollution implies that environmental resources have alternative uses. 
D)  Activities that create pollution do not generate a benefit from society's perspective.

Question 13

Since 1980, air quality in the United States has generally improved.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an environmental policy based on marketable pollution permits?

Accepted Answer

A)  A charge to automobile drivers of 10 cents for 100 units of pollutants emitted. 
B)  Paying automobile drivers 10 cents for each 10-percent reduction in automobile emissions. 
C)  Allowing automobile drivers to buy and sell the right to a certain level of automobile emissions. 
D)  Ignoring pollution and letting private markets operate without government interference. 
A)  A charge to automobile drivers of 10 cents for 100 units of pollutants emitted. 
B)  Paying automobile drivers 10 cents for each 10-percent reduction in automobile emissions. 
C)  Allowing automobile drivers to buy and sell the right to a certain level of automobile emissions. 
D)  Ignoring pollution and letting private markets operate without government interference.

Question 15

Pollution is not a result of scarcity.

Accepted Answer

A) True 
 B)False

Question 16

If the marginal benefit received from pollution is greater than its marginal cost, then:

Accepted Answer

A)  society's well-being can be improved if the quantity of pollution decreases. 
B)  society's well-being cannot be improved by changing the quantity of pollution. 
C)  the market is producing too much pollution. 
D)  the market is producing too little pollution. 
A)  society's well-being can be improved if the quantity of pollution decreases. 
B)  society's well-being cannot be improved by changing the quantity of pollution. 
C)  the market is producing too much pollution. 
D)  the market is producing too little pollution.

Question 17

An incentive approach to pollution control is:

Accepted Answer

A)  reliance on a direct control. 
B)  removing taxes on emissions. 
C)  marketable pollution permits. 
D)  command and control regulation. 
A)  reliance on a direct control. 
B)  removing taxes on emissions. 
C)  marketable pollution permits. 
D)  command and control regulation.

Question 18

Efforts to persuade people not to pollute have been relatively successful in:

Accepted Answer

A)  campaigns against littering. 
B)  reducing activities that pollute the air and water, especially where compliance costs are high. 
C)  pleas to people to refrain from driving on certain days. 
D)  reducing emissions of pollutants. 
A)  campaigns against littering. 
B)  reducing activities that pollute the air and water, especially where compliance costs are high. 
C)  pleas to people to refrain from driving on certain days. 
D)  reducing emissions of pollutants.

Question 19

Measuring the benefits and costs of pollution is generally more difficult than measuring the prices of marketable goods.

Accepted Answer

A) True 
 B)False

Question 20

Use the following to answer question(s): Pollution Abatement and Emissions
  
-(Exhibit: Pollution Abatement and Emissions) If the level of emissions is T, then the marginal cost of:

Accepted Answer

A)  abatement is less than the marginal cost of emissions. 
B)  emissions is less than the marginal cost of abatement. 
C)  abatement is too high to be efficient. 
D)  emissions is zero. 
A)  abatement is less than the marginal cost of emissions. 
B)  emissions is less than the marginal cost of abatement. 
C)  abatement is too high to be efficient. 
D)  emissions is zero.

According to many economists, the role of government activity in the area of pollution is to:

Efforts made to influence the behavior of people by appealing to their sense of values are called moral suasion.

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of emissions is R, then efficiency is achieved by:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of emissions is S, then the marginal cost of:

As the price per unit of pollution emissions _ , the total quantity demanded of pollution emissions _ .

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) An efficient solution takes place at a price of _ and a quantity of _ .

The marginal benefit curve for emitting pollutants can be read from _ to as the of __ pollution.

According to the Case in Point titled "Estimating a Demand Curve for Environmental Quantity," economists constructed such a demand curve by analyzing the market for:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) Curve A can be read from right to left as the marginal cost of:

The government attempts to reduce the global warming effects caused by the burning of fossil fuels such as oil, coal, and natural gas by establishing a minimum level of fuel efficiency on new cars.The regulatory approach used in this action is:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of emissions is S, then efficiency is achieved by:

Which of the following statements is true?

Since 1980, air quality in the United States has generally improved.

Which of the following is an environmental policy based on marketable pollution permits?

Pollution is not a result of scarcity.

If the marginal benefit received from pollution is greater than its marginal cost, then:

An incentive approach to pollution control is:

Efforts to persuade people not to pollute have been relatively successful in:

Measuring the benefits and costs of pollution is generally more difficult than measuring the prices of marketable goods.

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of emissions is T, then the marginal cost of:

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

Inequality, Poverty, and Discrimination

Filters

Exam 18: The Economics of the Environment

According to many economists, the role of government activity in the area of pollution is to:

Efforts made to influence the behavior of people by appealing to their sense of values are called moral suasion.

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of emissions is R, then efficiency is achieved by:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of emissions is S, then the marginal cost of:

As the price per unit of pollution emissions _______ , the total quantity demanded of pollution emissions _______ .

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) An efficient solution takes place at a price of _______ and a quantity of _______ .

The marginal benefit curve for emitting pollutants can be read from _______ to________ as the ________ of ________ pollution.

According to the Case in Point titled "Estimating a Demand Curve for Environmental Quantity," economists constructed such a demand curve by analyzing the market for:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) Curve A can be read from right to left as the marginal cost of:

The government attempts to reduce the global warming effects caused by the burning of fossil fuels such as oil, coal, and natural gas by establishing a minimum level of fuel efficiency on new cars.The regulatory approach used in this action is:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of emissions is S, then efficiency is achieved by:

Which of the following statements is true?

Since 1980, air quality in the United States has generally improved.

Which of the following is an environmental policy based on marketable pollution permits?

Pollution is not a result of scarcity.

If the marginal benefit received from pollution is greater than its marginal cost, then:

An incentive approach to pollution control is:

Efforts to persuade people not to pollute have been relatively successful in:

Measuring the benefits and costs of pollution is generally more difficult than measuring the prices of marketable goods.

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of emissions is T, then the marginal cost of:

Economics: The Study of Choice

Confronting Scarcity: Choices in Production

Demand and Supply

Applications of Supply and Demand

Elasticity: a Measure of Response

Markets, Maximizers, and Efficiency

The Analysis of Consumer Choice

Production and Cost

Competitive Markets for Goods and Services

Monopoly

The World of Imperfect Competition

Wages and Employment in Perfect Competition

Interest Rates and the Markets for Capital and Natural Resources

Imperfectly Competitive Markets for Factors of Production

Public Finance and Public Choice

Antitrust Policy and Business Regulation

International Trade

Inequality, Poverty, and Discrimination

Filters

As the price per unit of pollution emissions _ , the total quantity demanded of pollution emissions _ .

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) An efficient solution takes place at a price of _ and a quantity of _ .

The marginal benefit curve for emitting pollutants can be read from _ to as the of __ pollution.