Question 1

Air pollution did not cause great concern until the last few decades.

Accepted Answer

A) True 
 B)False

Question 2

Deodorant is an example of a collectively consumed gooD.

Accepted Answer

A) True 
 B)False

Question 3

Complete elimination of pollution is economically rational when

Accepted Answer

A) Pollution is associated with illness in humans 
B) For each unit of pollution,the cost of clean-up is less than the benefit from its elimination 
C) The pollution will likely affect future generations 
D) MSC of cleanup < MSB of cleanup 
E) None of the above; complete elimination is never rational 
A) Pollution is associated with illness in humans 
B) For each unit of pollution,the cost of clean-up is less than the benefit from its elimination 
C) The pollution will likely affect future generations 
D) MSC of cleanup < MSB of cleanup 
E) None of the above; complete elimination is never rational

Question 4

When there are no externalities,equilibrium in a market

Accepted Answer

A) Maximizes social well-being 
B) Equates quantity supplied and quantity demanded 
C) Equates MSB and MSC 
D) Equates MPB and MPC 
E) Does all of the above 
A) Maximizes social well-being 
B) Equates quantity supplied and quantity demanded 
C) Equates MSB and MSC 
D) Equates MPB and MPC 
E) Does all of the above

Question 5

The Following Questions Refer to the graph below.  
-Which of the following could explain a shift in the production possibilities curve from TT1 to TT2?

Accepted Answer

A) Over-utilization of pollution control activities 
B) Better techniques of pollution control 
C) Higher prices for other goods and services 
D) Increased benefits from pollution control 
E) Better technology for producing other goods and services 
A) Over-utilization of pollution control activities 
B) Better techniques of pollution control 
C) Higher prices for other goods and services 
D) Increased benefits from pollution control 
E) Better technology for producing other goods and services

Question 6

Pollution should be completely eliminated

Accepted Answer

A) When the marginal social benefit of control is greater than or equal to the marginal social cost of control for all units of pollution 
B) When the marginal social cost of control is zero 
C) At no time,from an economic perspective 
D) All of the above 
E) (a)and (b) 
A) When the marginal social benefit of control is greater than or equal to the marginal social cost of control for all units of pollution 
B) When the marginal social cost of control is zero 
C) At no time,from an economic perspective 
D) All of the above 
E) (a)and (b)

Question 7

When the marginal private cost of an activity does not equal the marginal social cost,which of the following exists?

Accepted Answer

A) Positive externality 
B) Negative externality 
C) Externality in consumption 
D) Externality in production 
E) External cost 
A) Positive externality 
B) Negative externality 
C) Externality in consumption 
D) Externality in production 
E) External cost

Question 8

The market output level tends to be socially optimal when

Accepted Answer

A) Demand equals supply in the market 
B) All costs and benefits are private and MSB=MSC 
C) There is neither a shortage nor a surplus of the product 
D) There are externalities in production 
E) There are externalities in consumption 
A) Demand equals supply in the market 
B) All costs and benefits are private and MSB=MSC 
C) There is neither a shortage nor a surplus of the product 
D) There are externalities in production 
E) There are externalities in consumption

Air pollution did not cause great concern until the last few decades.

Deodorant is an example of a collectively consumed gooD.

Complete elimination of pollution is economically rational when

When there are no externalities,equilibrium in a market

The Following Questions Refer to the graph below. -Which of the following could explain a shift in the production possibilities curve from TT₁ to TT₂?

Pollution should be completely eliminated

When the marginal private cost of an activity does not equal the marginal social cost,which of the following exists?

The market output level tends to be socially optimal when

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Unemployment and Inflation: Can We Find a Balance

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Filters

Exam 4: Pollution Problems: Must We Foul Our Own Nests

Air pollution did not cause great concern until the last few decades.

Deodorant is an example of a collectively consumed gooD.

Complete elimination of pollution is economically rational when

When there are no externalities,equilibrium in a market

The Following Questions Refer to the graph below. -Which of the following could explain a shift in the production possibilities curve from TT1 to TT2?

Pollution should be completely eliminated

When the marginal private cost of an activity does not equal the marginal social cost,which of the following exists?

The market output level tends to be socially optimal when

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

Filters

The Following Questions Refer to the graph below. -Which of the following could explain a shift in the production possibilities curve from TT₁ to TT₂?