Question 1

Since 1980 in the United States, air quality has _______ , and water quality has _______.

Accepted Answer

A)  generally worsened; generally worsened 
B)  generally improved; improved in some areas and deteriorated in others 
C)  generally improved; generally improved 
D)  generally worsened; generally improved 
A)  generally worsened; generally worsened 
B)  generally improved; improved in some areas and deteriorated in others 
C)  generally improved; generally improved 
D)  generally worsened; generally improved

Question 2

In general, if the level of pollution is reduced to zero, then:

Accepted Answer

A)  marginal cost of abatement is less than marginal cost of damages. 
B)  marginal cost of abatement is equal to marginal cost of damages. 
C)  economic efficiency is achieved. 
D)  economic efficiency is not achieved. 
A)  marginal cost of abatement is less than marginal cost of damages. 
B)  marginal cost of abatement is equal to marginal cost of damages. 
C)  economic efficiency is achieved. 
D)  economic efficiency is not achieved.

Question 3

Command and control is a regulatory approach that:

Accepted Answer

A)  allows the government to own and operate an activity directly. 
B)  grants a company the legal authority to participate in a given market. 
C)  attempts to change people's behavior by appealing to their values. 
D)  states precisely what a polluter must do, including the type of technology to be used. 
A)  allows the government to own and operate an activity directly. 
B)  grants a company the legal authority to participate in a given market. 
C)  attempts to change people's behavior by appealing to their values. 
D)  states precisely what a polluter must do, including the type of technology to be used.

Question 4

Which of the following statements is true?

Accepted Answer

A)  Surveys are not used to measure the marginal benefit curves for emissions. 
B)  Surveys are used to measure the marginal benefit curves for emissions. 
C)  Surveys are not used to measure the marginal cost curves for emissions. 
D)  Economists rely exclusively on engineers to provide accurate estimates of the benefits and costs of pollution. 
A)  Surveys are not used to measure the marginal benefit curves for emissions. 
B)  Surveys are used to measure the marginal benefit curves for emissions. 
C)  Surveys are not used to measure the marginal cost curves for emissions. 
D)  Economists rely exclusively on engineers to provide accurate estimates of the benefits and costs of pollution.

Question 5

Marginal benefit of pollution abatement curves may be inferred from other relationships, for example, the relationship between _______ and _______ .

Accepted Answer

A)  pollution; accounting costs 
B)  pollution; economies of scale 
C)  the demand for houses; air quality 
D)  the speeches at environmental rallies; number of nuclear generating plants 
A)  pollution; accounting costs 
B)  pollution; economies of scale 
C)  the demand for houses; air quality 
D)  the speeches at environmental rallies; number of nuclear generating plants

Question 6

Use the following to answer question(s): Efficiency and Pollution
  
-(Exhibit: Efficiency and Pollution) Point _______ represents an efficient solution.

Accepted Answer

A)  A 
B)  B 
C)  E 
D)  F 
A)  A 
B)  B 
C)  E 
D)  F

Question 7

Which of the following statements is true?

Accepted Answer

A)  Unlike other marginal cost curves, the marginal cost curve for pollution emissions is downward sloping. 
B)  Command and control is the favored approach of economists for eliminating pollution. 
C)  To be effective, emission taxes need to exceed the marginal cost of emissions. 
D)  Emissions taxes are an effective way to reduce pollution. 
A)  Unlike other marginal cost curves, the marginal cost curve for pollution emissions is downward sloping. 
B)  Command and control is the favored approach of economists for eliminating pollution. 
C)  To be effective, emission taxes need to exceed the marginal cost of emissions. 
D)  Emissions taxes are an effective way to reduce pollution.

Question 8

The organized exchange of licenses that enable the holder to pollute up to a specified amount during a given time period is most closely associated with:

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 9

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

Accepted Answer

A)  30; it would be efficient 
B)  30; MB > MC 
C)  45; total cost would equal total benefits 
D)  45; MC = 0 
A)  30; it would be efficient 
B)  30; MB > MC 
C)  45; total cost would equal total benefits 
D)  45; MC = 0

Question 10

Use the following to answer question(s): A Market for Pollution
  
-(Exhibit: A Market for Pollution) If there is neither too little nor too much pollution, the level of emissions per period will be _______ , and the market is _______ .

Accepted Answer

A)  greater than Q; inefficient 
B)  Q; inefficient 
C)  less than Q; efficient 
D)  Q; efficient 
A)  greater than Q; inefficient 
B)  Q; inefficient 
C)  less than Q; efficient 
D)  Q; efficient

Question 11

A charge that is equal to the external cost caused by pollution is a(n):

Accepted Answer

A)  pollution rights market permit. 
B)  recycling subsidy. 
C)  extraction tax. 
D)  emissions tax. 
A)  pollution rights market permit. 
B)  recycling subsidy. 
C)  extraction tax. 
D)  emissions tax.

Question 12

There are actual benefits resulting indirectly from pollution, because:

Accepted Answer

A)  we obtain goods and services we enjoy even though in the in the process we create pollution. 
B)  firms pollute the environment only if it allows them to provide people with goods and services they desire at a higher cost. 
C)  businesses and consumers receive a perverse satisfaction from polluting. 
D)  it can often be beneficial to wildlife. 
A)  we obtain goods and services we enjoy even though in the in the process we create pollution. 
B)  firms pollute the environment only if it allows them to provide people with goods and services they desire at a higher cost. 
C)  businesses and consumers receive a perverse satisfaction from polluting. 
D)  it can often be beneficial to wildlife.

Question 13

Pollution imposes a cost in the economic sense if it damages plants or animals:

Accepted Answer

A)  valued by people. 
B)  owned by business firms. 
C)  considered endangered. 
D)  that live in close proximity to people. 
A)  valued by people. 
B)  owned by business firms. 
C)  considered endangered. 
D)  that live in close proximity to people.

Question 14

Pollution exists any time residuals are returned to the natural environment.

Accepted Answer

A) True 
 B)False

Question 15

Emissions taxes and marketable pollution permits are two command-and-control approaches to reducing pollution.

Accepted Answer

A) True 
 B)False

Question 16

The marginal cost of pollution decreases as the quantity of pollution emissions increases.

Accepted Answer

A) True 
 B)False

Question 17

The government attempts to reduce the noise from airplanes by restricting the noise level from a jet engine to less than 50 decibels.The regulatory approach used in this action is:

Accepted Answer

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

Question 18

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

Accepted Answer

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

Question 19

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

Accepted Answer

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

Question 20

The efficient level of pollution is:

Accepted Answer

A)  the quantity at which its total benefits exceeds its total costs by the greatest possible amount. 
B)  the quantity at which its total benefits equals its total costs. 
C)  where the marginal benefit of an additional unit of pollution emission is greater than the marginal cost of the additional unit of pollution. 
D)  where the marginal benefit of an additional unit of pollution emission is less than the marginal cost of the additional unit of pollution. 
A)  the quantity at which its total benefits exceeds its total costs by the greatest possible amount. 
B)  the quantity at which its total benefits equals its total costs. 
C)  where the marginal benefit of an additional unit of pollution emission is greater than the marginal cost of the additional unit of pollution. 
D)  where the marginal benefit of an additional unit of pollution emission is less than the marginal cost of the additional unit of pollution.

Since 1980 in the United States, air quality has _ , and water quality has _.

In general, if the level of pollution is reduced to zero, then:

Command and control is a regulatory approach that:

Which of the following statements is true?

Marginal benefit of pollution abatement curves may be inferred from other relationships, for example, the relationship between _ and _ .

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) Point _______ represents an efficient solution.

Which of the following statements is true?

The organized exchange of licenses that enable the holder to pollute up to a specified amount during a given time period is most closely associated with:

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

Use the following to answer question(s): A Market for Pollution -(Exhibit: A Market for Pollution) If there is neither too little nor too much pollution, the level of emissions per period will be _ , and the market is _ .

A charge that is equal to the external cost caused by pollution is a(n):

There are actual benefits resulting indirectly from pollution, because:

Pollution imposes a cost in the economic sense if it damages plants or animals:

Pollution exists any time residuals are returned to the natural environment.

Emissions taxes and marketable pollution permits are two command-and-control approaches to reducing pollution.

The marginal cost of pollution decreases as the quantity of pollution emissions increases.

The government attempts to reduce the noise from airplanes by restricting the noise level from a jet engine to less than 50 decibels.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 U, then the marginal cost of:

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

The efficient level of pollution is:

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

Since 1980 in the United States, air quality has _______ , and water quality has _______.

In general, if the level of pollution is reduced to zero, then:

Command and control is a regulatory approach that:

Which of the following statements is true?

Marginal benefit of pollution abatement curves may be inferred from other relationships, for example, the relationship between _______ and _______ .

Use the following to answer question(s): Efficiency and Pollution -(Exhibit: Efficiency and Pollution) Point _______ represents an efficient solution.

Which of the following statements is true?

The organized exchange of licenses that enable the holder to pollute up to a specified amount during a given time period is most closely associated with:

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

Use the following to answer question(s): A Market for Pollution -(Exhibit: A Market for Pollution) If there is neither too little nor too much pollution, the level of emissions per period will be _______ , and the market is _______ .

A charge that is equal to the external cost caused by pollution is a(n):

There are actual benefits resulting indirectly from pollution, because:

Pollution imposes a cost in the economic sense if it damages plants or animals:

Pollution exists any time residuals are returned to the natural environment.

Emissions taxes and marketable pollution permits are two command-and-control approaches to reducing pollution.

The marginal cost of pollution decreases as the quantity of pollution emissions increases.

The government attempts to reduce the noise from airplanes by restricting the noise level from a jet engine to less than 50 decibels.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 U, then the marginal cost of:

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

The efficient level of pollution is:

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

Since 1980 in the United States, air quality has _ , and water quality has _.

Marginal benefit of pollution abatement curves may be inferred from other relationships, for example, the relationship between _ and _ .

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

Use the following to answer question(s): A Market for Pollution -(Exhibit: A Market for Pollution) If there is neither too little nor too much pollution, the level of emissions per period will be _ , and the market is _ .