Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Use the following to answer question(s): A Market for Pollution
  
-(Exhibit: A Market for Pollution) If there is an efficient level of emissions, it will occur where:

Accepted Answer

A)  price is P and quantity is = Q. 
B)  MB > MC. 
C)  there is excess supply of emissions. 
D)  there is an excess demand for pollution. 
A)  price is P and quantity is = Q. 
B)  MB > MC. 
C)  there is excess supply of emissions. 
D)  there is an excess demand for pollution.

Question 3

Taxes are a more effective method of controlling pollution than the command-and-control approach in part because:

Accepted Answer

A)  standards allow greater flexibility. 
B)  standards require less information. 
C)  standards never require the efficient level of output. 
D)  taxes and subsidies encourage innovation. 
A)  standards allow greater flexibility. 
B)  standards require less information. 
C)  standards never require the efficient level of output. 
D)  taxes and subsidies encourage innovation.

Question 4

With marketable pollution permits, if the demand for emissions shifts to the left, the equilibrium price of permits _______ and the equilibrium quantity _______ .

Accepted Answer

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

Question 5

When the amount of pollution is reduced through abatement programs:

Accepted Answer

A)  it increases benefits to some people with no cost imposed on anyone else. 
B)  benefits and costs may both be increased. 
C)  it results only in cost increases. 
D)  there is no way to estimate the costs and benefits of such activity. 
A)  it increases benefits to some people with no cost imposed on anyone else. 
B)  benefits and costs may both be increased. 
C)  it results only in cost increases. 
D)  there is no way to estimate the costs and benefits of such activity.

Question 6

Use the following to answer question(s): A Market for Pollution
  
-(Exhibit: A Market for Pollution) If there is too much pollution:

Accepted Answer

A)  output will be at Q. 
B)  resources will be under allocated to the production of the good that is associated with the generation of the pollution. 
C)  resources will be overallocated to the production of the good that is associated with the generation of the pollution. 
D)  MC < MB. 
A)  output will be at Q. 
B)  resources will be under allocated to the production of the good that is associated with the generation of the pollution. 
C)  resources will be overallocated to the production of the good that is associated with the generation of the pollution. 
D)  MC < MB.

Question 7

Use the following to answer question(s): Pollution Abatement and Emissions
  
-(Exhibit: Pollution Abatement and Emissions) The level of emissions in a market for which none of the costs of pollution were faced by producers would be closest to

Accepted Answer

A)  R. 
B)  S. 
C)  T. 
D)  U. 
A)  R. 
B)  S. 
C)  T. 
D)  U.

Question 8

Use the following to answer question(s): Efficiency and Pollution
  
-(Exhibit: Efficiency and Pollution) If this market produced _______ units, then _______.

Accepted Answer

A)  40; MB = MC 
B)  30; MB < MC 
C)  40; MB < MC 
D)  30; MC < MB 
A)  40; MB = MC 
B)  30; MB < MC 
C)  40; MB < MC 
D)  30; MC < MB

Question 9

As the quantity of pollution emissions rises, the marginal cost of pollution:

Accepted Answer

A)  remains constant. 
B)  falls. 
C)  rises. 
D)  rises at first, but eventually falls. 
A)  remains constant. 
B)  falls. 
C)  rises. 
D)  rises at first, but eventually falls.

Question 10

Use the following to answer question(s): Pollution Abatement and Emissions
  
-(Exhibit: Pollution Abatement and Emissions) If the level of pollution were at 0:

Accepted Answer

A)  efficiency is achieved. 
B)  efficiency is achieved by increasing the level of pollution. 
C)  efficiency is achieved by decreasing the level of pollution. 
D)  the economic problems associated with pollution disappear. 
A)  efficiency is achieved. 
B)  efficiency is achieved by increasing the level of pollution. 
C)  efficiency is achieved by decreasing the level of pollution. 
D)  the economic problems associated with pollution disappear.

Question 11

Suppose that the federal government determines the total level of municipal sewage that can be discharged by cities located along a river.If the cities are able to exchange rights to this total discharge level among themselves, this would be an environmental policy of:

Accepted Answer

A)  emissions taxes. 
B)  regulations. 
C)  marketable pollution permits. 
D)  command and control. 
A)  emissions taxes. 
B)  regulations. 
C)  marketable pollution permits. 
D)  command and control.

Question 12

The marginal cost curve for increased pollution emission levels can be read from ________ to ________ as the ________ curve for improved environmental ________.

Accepted Answer

A)  right; left; supply; quantity 
B)  right; left; demand; quality 
C)  left; right; demand; quality 
D)  left; right; supply; quantity 
A)  right; left; supply; quantity 
B)  right; left; demand; quality 
C)  left; right; demand; quality 
D)  left; right; supply; quantity

Question 13

Use the following to answer question(s): Pollution Abatement and Emissions
  
-(Exhibit: Pollution Abatement and Emissions) Curve B is the marginal cost of:

Accepted Answer

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

Question 14

Use the following to answer question(s): Efficiency and Pollution
  
-(Exhibit: Efficiency and Pollution) A situation where there is too much pollution in this market may be illustrated when the price is _______ and the quantity is _______ .

Accepted Answer

A)  $5; 15 
B)  $5; 40 
C)  $25; 20 
D)  $5; 30 
A)  $5; 15 
B)  $5; 40 
C)  $25; 20 
D)  $5; 30

Question 15

Suppose that the government attempts to reduce the noise from airplanes by charging airlines $1,000 for each takeoff using any engine that emits over 50 decibels.The regulatory approach used in this action is:

Accepted Answer

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

Question 16

Reducing emissions so that the marginal benefit of an additional unit of pollution is the same for all polluters is an example of:

Accepted Answer

A)  command and control. 
B)  least-cost reduction in emissions. 
C)  moral suasion. 
D)  profit maximization. 
A)  command and control. 
B)  least-cost reduction in emissions. 
C)  moral suasion. 
D)  profit maximization.

Question 17

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

Accepted Answer

A)  the market is producing an efficient quantity of pollution. 
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)  the market is producing an efficient quantity of pollution. 
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 18

Using a supply and demand curve for pollution, discuss and contrast how resource allocation is affected when there is no pollution and when there is pollution.

Accepted Answer

When there is no pollution, the supply a

Question 19

The demand curve for emissions is a marginal cost of abatement curve when read from right to left.

Accepted Answer

A) True 
 B)False

Question 20

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

Accepted Answer

A) True 
 B)False

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

Use the following to answer question(s): A Market for Pollution -(Exhibit: A Market for Pollution) If there is an efficient level of emissions, it will occur where:

Taxes are a more effective method of controlling pollution than the command-and-control approach in part because:

With marketable pollution permits, if the demand for emissions shifts to the left, the equilibrium price of permits _ and the equilibrium quantity _ .

When the amount of pollution is reduced through abatement programs:

Use the following to answer question(s): A Market for Pollution -(Exhibit: A Market for Pollution) If there is too much pollution:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) The level of emissions in a market for which none of the costs of pollution were faced by producers would be closest to

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) If this market produced _ units, then _.

As the quantity of pollution emissions rises, the marginal cost of pollution:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of pollution were at 0:

Suppose that the federal government determines the total level of municipal sewage that can be discharged by cities located along a river.If the cities are able to exchange rights to this total discharge level among themselves, this would be an environmental policy of:

The marginal cost curve for increased pollution emission levels can be read from to as the curve for improved environmental .

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) Curve B is the marginal cost of:

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) A situation where there is too much pollution in this market may be illustrated when the price is _ and the quantity is _ .

Suppose that the government attempts to reduce the noise from airplanes by charging airlines $1,000 for each takeoff using any engine that emits over 50 decibels.The regulatory approach used in this action is:

Reducing emissions so that the marginal benefit of an additional unit of pollution is the same for all polluters is an example of:

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

Using a supply and demand curve for pollution, discuss and contrast how resource allocation is affected when there is no pollution and when there is pollution.

The demand curve for emissions is a marginal cost of abatement curve when read from right to left.

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

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

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

Use the following to answer question(s): A Market for Pollution -(Exhibit: A Market for Pollution) If there is an efficient level of emissions, it will occur where:

Taxes are a more effective method of controlling pollution than the command-and-control approach in part because:

With marketable pollution permits, if the demand for emissions shifts to the left, the equilibrium price of permits _______ and the equilibrium quantity _______ .

When the amount of pollution is reduced through abatement programs:

Use the following to answer question(s): A Market for Pollution -(Exhibit: A Market for Pollution) If there is too much pollution:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) The level of emissions in a market for which none of the costs of pollution were faced by producers would be closest to

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) If this market produced _______ units, then _______.

As the quantity of pollution emissions rises, the marginal cost of pollution:

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) If the level of pollution were at 0:

Suppose that the federal government determines the total level of municipal sewage that can be discharged by cities located along a river.If the cities are able to exchange rights to this total discharge level among themselves, this would be an environmental policy of:

The marginal cost curve for increased pollution emission levels can be read from ________ to ________ as the ________ curve for improved environmental ________.

Use the following to answer question(s): Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) Curve B is the marginal cost of:

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) A situation where there is too much pollution in this market may be illustrated when the price is _______ and the quantity is _______ .

Suppose that the government attempts to reduce the noise from airplanes by charging airlines $1,000 for each takeoff using any engine that emits over 50 decibels.The regulatory approach used in this action is:

Reducing emissions so that the marginal benefit of an additional unit of pollution is the same for all polluters is an example of:

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

Using a supply and demand curve for pollution, discuss and contrast how resource allocation is affected when there is no pollution and when there is pollution.

The demand curve for emissions is a marginal cost of abatement curve when read from right to left.

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

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

With marketable pollution permits, if the demand for emissions shifts to the left, the equilibrium price of permits _ and the equilibrium quantity _ .

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) If this market produced _ units, then _.

The marginal cost curve for increased pollution emission levels can be read from to as the curve for improved environmental .

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) A situation where there is too much pollution in this market may be illustrated when the price is _ and the quantity is _ .