Question 1

According to the text, the command-and-control approach to pollution abatement is:

Accepted Answer

A)  favored by economists. 
B)  not favored by economists. 
C)  favored by economists over taxes, but not over any other approaches. 
D)  efficient. 
A)  favored by economists. 
B)  not favored by economists. 
C)  favored by economists over taxes, but not over any other approaches. 
D)  efficient.

Question 2

When marketable pollution permits are used, if the demand for emissions shifts to the right, the equilibrium price of permits _______ , and the equilibrium quantity _______ .

Accepted Answer

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

Question 3

An advantage of marketable pollution permits is that:

Accepted Answer

A)  pollution costs are easier to measure than emissions taxes. 
B)  they keep the overall level of pollution constant, regardless of industry growth. 
C)  nondegradable pollutants can be more easily controlled than degradable pollutants. 
D)  the value that future generations place on pollution damages can be determined. 
A)  pollution costs are easier to measure than emissions taxes. 
B)  they keep the overall level of pollution constant, regardless of industry growth. 
C)  nondegradable pollutants can be more easily controlled than degradable pollutants. 
D)  the value that future generations place on pollution damages can be determined.

Question 4

Suppose that automobile owners pay a monthly fee based on the number of miles driven and the amount of pollutants discharged when the car is running.This would be an environmental policy of:

Accepted Answer

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

Question 5

If a copper mining operation discharges waste products into a river and causes higher costs and discomfort to downstream users of the water for which they are not compensated, then:

Accepted Answer

A)  too few of society's resources are being used to produce copper. 
B)  too many of society's resources are being used to produce copper. 
C)  the ideal amount of society's resources is being used to produce copper. 
D)  there is an external benefit to society from copper production. 
A)  too few of society's resources are being used to produce copper. 
B)  too many of society's resources are being used to produce copper. 
C)  the ideal amount of society's resources is being used to produce copper. 
D)  there is an external benefit to society from copper production.

Question 6

The intersection of the demand curve for pollution emissions and the marginal cost curve for pollution is:

Accepted Answer

A)  the efficient level of pollution emissions. 
B)  greater than the efficient level of pollution emissions. 
C)  less than the efficient level of pollution emissions. 
D)  could be greater or less than the efficient level of pollution emissions. 
A)  the efficient level of pollution emissions. 
B)  greater than the efficient level of pollution emissions. 
C)  less than the efficient level of pollution emissions. 
D)  could be greater or less than the efficient level of pollution emissions.

Question 7

According to the Coase theorem, the private market can achieve an efficient outcome:

Accepted Answer

A)  as long as the enforcement of property rights costs less than the marginal benefit of emissions. 
B)  only if the property right to clean air is assigned to the polluter. 
C)  only if the property right to clean air is assigned to the party harmed by pollution. 
D)  if property rights are well defined and bargaining is costless. 
A)  as long as the enforcement of property rights costs less than the marginal benefit of emissions. 
B)  only if the property right to clean air is assigned to the polluter. 
C)  only if the property right to clean air is assigned to the party harmed by pollution. 
D)  if property rights are well defined and bargaining is costless.

Question 8

According to the text, whenever human activity generates a sufficient concentration of a substance in the environment to cause harm to people, it is called:

Accepted Answer

A)  a free good. 
B)  an external shock. 
C)  a result of human greed. 
D)  pollution. 
A)  a free good. 
B)  an external shock. 
C)  a result of human greed. 
D)  pollution.

Question 9

Damage to the environment occurs because:

Accepted Answer

A)  most businesses just don't care about the environment. 
B)  consumers want goods and services at the lowest prices, no matter what other costs may be involved. 
C)  in the process of obtaining goods and services we enjoy, pollution occurs. 
D)  pollution occurs naturally, with or without human activity. 
A)  most businesses just don't care about the environment. 
B)  consumers want goods and services at the lowest prices, no matter what other costs may be involved. 
C)  in the process of obtaining goods and services we enjoy, pollution occurs. 
D)  pollution occurs naturally, with or without human activity.

Question 10

Pollution is defined as the generation of waste materials that cannot be returned to the environment.

Accepted Answer

A) True 
 B)False

Question 11

In general, the command-and-control approach to correcting pollution problems is:

Accepted Answer

A)  favored by economists over all other approaches. 
B)  favored by economists over taxes but not over other approaches. 
C)  favored by economists over other approaches but not over taxes. 
D)  not favored by economists over other approaches. 
A)  favored by economists over all other approaches. 
B)  favored by economists over taxes but not over other approaches. 
C)  favored by economists over other approaches but not over taxes. 
D)  not favored by economists over other approaches.

Question 12

Creating market-like _______ to encourage reductions in pollution, but allowing _______ to decide how much to pollute, is the _______ approach.

Accepted Answer

A)  incentives; individual decision-makers; incentive 
B)  conditions; government; incentive 
C)  controls; government; moral suasion 
D)  barriers; individuals; free enterprise 
A)  incentives; individual decision-makers; incentive 
B)  conditions; government; incentive 
C)  controls; government; moral suasion 
D)  barriers; individuals; free enterprise

Question 13

The effort to change people's behavior by appealing to their sense of values 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 14

As the price per unit of emissions falls, the quantity of emissions demanded:

Accepted Answer

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

Question 15

Use the following to answer question(s): Efficiency and Pollution
  
-(Exhibit: Efficiency and Pollution) The efficient solution to pollution problems:

Accepted Answer

A)  maximizes net benefit. 
B)  maximizes total benefit. 
C)  maximizes emissions. 
D)  minimizes emissions. 
A)  maximizes net benefit. 
B)  maximizes total benefit. 
C)  maximizes emissions. 
D)  minimizes emissions.

Question 16

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

Accepted Answer

A)  remains constant; increases 
B)  decreases; increases 
C)  increases; increases 
D)  remains constant; decreases 
A)  remains constant; increases 
B)  decreases; increases 
C)  increases; increases 
D)  remains constant; decreases

Question 17

Discuss in detail the following statement: "We need to rid ourselves of all pollution, no matter what the cost."

Accepted Answer

The statement "We need to rid ourselves

Question 18

The government has adopted an environmental policy based on emissions taxes if it:

Accepted Answer

A)  transfers ownership of city air to a private firm that charges automobile drivers a profit-maximizing price, based in part on the pollution capacity of the atmosphere. 
B)  charges automobile drivers 10 cents for each unit of automobile emissions. 
C)  pays automobile drivers 10 cents for each 10 percent reduction in automobile emissions. 
D)  specifies the type of catalytic converter that must be used to reduce automobile emissions. 
A)  transfers ownership of city air to a private firm that charges automobile drivers a profit-maximizing price, based in part on the pollution capacity of the atmosphere. 
B)  charges automobile drivers 10 cents for each unit of automobile emissions. 
C)  pays automobile drivers 10 cents for each 10 percent reduction in automobile emissions. 
D)  specifies the type of catalytic converter that must be used to reduce automobile emissions.

Question 19

Discuss and explain in detail the marketable pollution permit approach to the control of pollution.

Accepted Answer

The marketable pollution permit approach

Question 20

Command and control is economists' most favored method of eliminating pollution because it achieves a least-cost reduction in emissions.

Accepted Answer

A) True 
 B)False

According to the text, the command-and-control approach to pollution abatement is:

When marketable pollution permits are used, if the demand for emissions shifts to the right, the equilibrium price of permits _ , and the equilibrium quantity _ .

An advantage of marketable pollution permits is that:

Suppose that automobile owners pay a monthly fee based on the number of miles driven and the amount of pollutants discharged when the car is running.This would be an environmental policy of:

If a copper mining operation discharges waste products into a river and causes higher costs and discomfort to downstream users of the water for which they are not compensated, then:

The intersection of the demand curve for pollution emissions and the marginal cost curve for pollution is:

According to the Coase theorem, the private market can achieve an efficient outcome:

According to the text, whenever human activity generates a sufficient concentration of a substance in the environment to cause harm to people, it is called:

Damage to the environment occurs because:

Pollution is defined as the generation of waste materials that cannot be returned to the environment.

In general, the command-and-control approach to correcting pollution problems is:

Creating market-like ___ to encourage reductions in pollution, but allowing _ to decide how much to pollute, is the _____ approach.

The effort to change people's behavior by appealing to their sense of values is:

As the price per unit of emissions falls, the quantity of emissions demanded:

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) The efficient solution to pollution problems:

The marginal cost of pollution _ as the quantity of pollution emissions _ .

Discuss in detail the following statement: "We need to rid ourselves of all pollution, no matter what the cost."

The government has adopted an environmental policy based on emissions taxes if it:

Discuss and explain in detail the marketable pollution permit approach to the control of pollution.

Command and control is economists' most favored method of eliminating pollution because it achieves a least-cost reduction in emissions.

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 the text, the command-and-control approach to pollution abatement is:

When marketable pollution permits are used, if the demand for emissions shifts to the right, the equilibrium price of permits _______ , and the equilibrium quantity _______ .

An advantage of marketable pollution permits is that:

Suppose that automobile owners pay a monthly fee based on the number of miles driven and the amount of pollutants discharged when the car is running.This would be an environmental policy of:

If a copper mining operation discharges waste products into a river and causes higher costs and discomfort to downstream users of the water for which they are not compensated, then:

The intersection of the demand curve for pollution emissions and the marginal cost curve for pollution is:

According to the Coase theorem, the private market can achieve an efficient outcome:

According to the text, whenever human activity generates a sufficient concentration of a substance in the environment to cause harm to people, it is called:

Damage to the environment occurs because:

Pollution is defined as the generation of waste materials that cannot be returned to the environment.

In general, the command-and-control approach to correcting pollution problems is:

Creating market-like _______ to encourage reductions in pollution, but allowing _______ to decide how much to pollute, is the _______ approach.

The effort to change people's behavior by appealing to their sense of values is:

As the price per unit of emissions falls, the quantity of emissions demanded:

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) The efficient solution to pollution problems:

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

Discuss in detail the following statement: "We need to rid ourselves of all pollution, no matter what the cost."

The government has adopted an environmental policy based on emissions taxes if it:

Discuss and explain in detail the marketable pollution permit approach to the control of pollution.

Command and control is economists' most favored method of eliminating pollution because it achieves a least-cost reduction in emissions.

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

When marketable pollution permits are used, if the demand for emissions shifts to the right, the equilibrium price of permits _ , and the equilibrium quantity _ .

Creating market-like ___ to encourage reductions in pollution, but allowing _ to decide how much to pollute, is the _____ approach.

The marginal cost of pollution _ as the quantity of pollution emissions _ .