Question 1

If the carbon tax is imposed in order to reduce the emissions, it will:

Accepted Answer

A)  increase the quantity of carbon intensive outputs. 
B)  shift the demand for carbon intensive outputs to the right. 
C)  have no impact on the quantity of carbon intensive outputs. 
D)  lower the quantity of carbon intensive outputs. 
A)  increase the quantity of carbon intensive outputs. 
B)  shift the demand for carbon intensive outputs to the right. 
C)  have no impact on the quantity of carbon intensive outputs. 
D)  lower the quantity of carbon intensive outputs.

Question 2

The objective of the carbon tax is to encourage more production using carbon intensive technologies.

Accepted Answer

A) True 
 B)False

Question 3

An alternative approach to carbon tax is:

Accepted Answer

A)  resource super profits tax. 
B)  income tax. 
C)  exchange. 
D)  Carban emissions trading scheme. 
A)  resource super profits tax. 
B)  income tax. 
C)  exchange. 
D)  Carban emissions trading scheme.

Question 4

If the pollution control costs are low but the carbon tax is high, firms are encouraged to:

Accepted Answer

A)  pay the carbon tax. 
B)  install pollution control equipment. 
C)  sell their inventories at lower prices. 
D)  increase production. 
A)  pay the carbon tax. 
B)  install pollution control equipment. 
C)  sell their inventories at lower prices. 
D)  increase production.

Question 5

Regulation can encourage firms to:

Accepted Answer

A)  introduce processes that reduce emissions per unit of output more than without
The regulation. 
B)  increase the output because firms have limited competition. 
C)  increase emissions as their output declines. 
D)  adopt emissions intensive technologies. 
A)  introduce processes that reduce emissions per unit of output more than without
The regulation. 
B)  increase the output because firms have limited competition. 
C)  increase emissions as their output declines. 
D)  adopt emissions intensive technologies.

Question 6

Narrbegin Exhibit 10.2 Carbon emissions as an externality   
-In Exhibit 10.2, what is the price of carbon intensive outputs if the supply is 'Supply 1'?

Accepted Answer

A)  $30. 
B)  $40. 
C)  $50. 
D)  $20. 
A)  $30. 
B)  $40. 
C)  $50. 
D)  $20.

Question 7

The absence of the external costs of carbon emissions in the price of electricity means that:

Accepted Answer

A)  firms produce electricity accounting for the global warming. 
B)  firms produce electricity equal to what is socially desirable. 
C)  firms produce more electricity than is socially desirable. 
D)  firms produce less electricity than is socially desirable. 
A)  firms produce electricity accounting for the global warming. 
B)  firms produce electricity equal to what is socially desirable. 
C)  firms produce more electricity than is socially desirable. 
D)  firms produce less electricity than is socially desirable.

Question 8

Narrbegin Exhibit 10.2 Carbon emissions as an externality   
-Suppose the government imposed a carbon tax to reduce carbon emissions. How is it illustrated in Exhibit 10.2?

Accepted Answer

A)  A shift from 'Supply 2' to 'Supply 1'. 
B)  A movement along the 'Supply 1' curve. 
C)  A shift in demand. 
D)  A shift from 'Supply 1' to 'Supply 2'. 
A)  A shift from 'Supply 2' to 'Supply 1'. 
B)  A movement along the 'Supply 1' curve. 
C)  A shift in demand. 
D)  A shift from 'Supply 1' to 'Supply 2'.

Question 9

Firms wanting to emit carbon dioxide have to:

Accepted Answer

A)  buy emissions permits. 
B)  sell emissions permits. 
C)  stop production. 
D)  exit the industry. 
A)  buy emissions permits. 
B)  sell emissions permits. 
C)  stop production. 
D)  exit the industry.

Question 10

Narrbegin Exhibit 10.2 Carbon emissions as an externality   
-Assume that the private supply is 'Supply 1' and the supply including tax is 'Supply 2' (Exhibit 10.2). What is the reduction in the output after the carbon tax was imposed?

Accepted Answer

A)  zero units. 
B)  30 units. 
C)  20 units. 
D)  10 units. 
A)  zero units. 
B)  30 units. 
C)  20 units. 
D)  10 units.

Question 11

Narrbegin Exhibit 10.3 Price and demand for permits data
 $$\begin{array} { |c | c |} 
\hline \text { Price } & \text { Quantity } \
\hline 10 & 110 \
\hline 20 & 100 \
\hline 30 & 90 \
\hline 40 & 80 \
\hline 50 & 70 \
\hline 60 & 60\
\hline
\end{array}$$ Narrend
-In Exhibit 10.3, if the 'cap' is set at 80 permits, and the demand for the permits decreased by 10 units at each price level, the resulting price of permits is equal to:

Accepted Answer

A)  $50. 
B)  $30. 
C)  $10. 
D)  $40 
A)  $50. 
B)  $30. 
C)  $10. 
D)  $40

Question 12

Long-term changes in the world's climate are believed to be caused partly by:

Accepted Answer

A)  human activity. 
B)  natural changes in climate. 
C)  pre-industrial revolution. 
D)  governments' policies. 
A)  human activity. 
B)  natural changes in climate. 
C)  pre-industrial revolution. 
D)  governments' policies.

Question 13

Which of the following statements is true?

Accepted Answer

A)  A 'cap and trade' scheme is beneficial to consumers because more goods are produced. 
B)  A new emissions reducing production technology will increase the price of emissions permits. 
C)  A 'cap and trade' scheme has a fixed price for emissions permits. 
D)  A decrease in demand for permits reduces the equilibrium price of permits. 
A)  A 'cap and trade' scheme is beneficial to consumers because more goods are produced. 
B)  A new emissions reducing production technology will increase the price of emissions permits. 
C)  A 'cap and trade' scheme has a fixed price for emissions permits. 
D)  A decrease in demand for permits reduces the equilibrium price of permits.

Question 14

Narrbegin Exhibit 10.3 Price and demand for permits data
 $$\begin{array} { |c | c |} 
\hline \text { Price } & \text { Quantity } \
\hline 10 & 110 \
\hline 20 & 100 \
\hline 30 & 90 \
\hline 40 & 80 \
\hline 50 & 70 \
\hline 60 & 60\
\hline
\end{array}$$ Narrend
-In Exhibit 10.3, if the 'cap' is set at 80 permits, the resulting market price of permits is:

Accepted Answer

A)  $60. 
B)  $30. 
C)  $40. 
D)  $10. 
A)  $60. 
B)  $30. 
C)  $40. 
D)  $10.

Question 15

Narrbegin Exhibit 10.4 The market for permits   
-In Exhibit 10.4, suppose that there is a slowdown in the economy. That is illustrated by:

Accepted Answer

A)  a shift from 'Demand 1' to 'Cap'. 
B)  a shift from 'Demand 2' to 'Demand 1'. 
C)  a shift from 'Demand 1' to 'Demand 2'. 
D)  a shift from 'Cap' to 'Demand 2'. 
A)  a shift from 'Demand 1' to 'Cap'. 
B)  a shift from 'Demand 2' to 'Demand 1'. 
C)  a shift from 'Demand 1' to 'Demand 2'. 
D)  a shift from 'Cap' to 'Demand 2'.

Question 16

The estimates of prices for a permit to emit one tonne of carbon followed by the introduction of a 'cap and trade' scheme have been:

Accepted Answer

A)  less than $50 per tonne of carbon reduced. 
B)  less than $500 per tonne of carbon reduced. 
C)  less than $50 per household. 
D)  less than $5 per tonne of carbon reduced. 
A)  less than $50 per tonne of carbon reduced. 
B)  less than $500 per tonne of carbon reduced. 
C)  less than $50 per household. 
D)  less than $5 per tonne of carbon reduced.

Question 17

Australian governments have argued that:

Accepted Answer

A)  Australia should not focus on climate change issues as it is a minor issue for Australia. 
B)  Australia should address the climate change issues even if other countries are unwilling to do so. 
C)  Australia should address the poverty issues first. 
D)  Australia should address the climate change issues only when other countries are willing to do the same. 
A)  Australia should not focus on climate change issues as it is a minor issue for Australia. 
B)  Australia should address the climate change issues even if other countries are unwilling to do so. 
C)  Australia should address the poverty issues first. 
D)  Australia should address the climate change issues only when other countries are willing to do the same.

Question 18

The carbon tax has to be set at the ________ level.

Accepted Answer

A)  high 
B)  correct 
C)  low 
D)  fair 
A)  high 
B)  correct 
C)  low 
D)  fair

Question 19

Chapter 10 of the textbook refers to 'ETS' as:

Accepted Answer

A)  Enterprise Technology Services 
B)  Energy Transfer System. 
C)  Edmonton Transit System. 
D)  Emissions Trading Scheme. 
A)  Enterprise Technology Services 
B)  Energy Transfer System. 
C)  Edmonton Transit System. 
D)  Emissions Trading Scheme.

If the carbon tax is imposed in order to reduce the emissions, it will:

The objective of the carbon tax is to encourage more production using carbon intensive technologies.

An alternative approach to carbon tax is:

If the pollution control costs are low but the carbon tax is high, firms are encouraged to:

Regulation can encourage firms to:

Narrbegin Exhibit 10.2 Carbon emissions as an externality -In Exhibit 10.2, what is the price of carbon intensive outputs if the supply is 'Supply 1'?

The absence of the external costs of carbon emissions in the price of electricity means that:

Narrbegin Exhibit 10.2 Carbon emissions as an externality -Suppose the government imposed a carbon tax to reduce carbon emissions. How is it illustrated in Exhibit 10.2?

Firms wanting to emit carbon dioxide have to:

Narrbegin Exhibit 10.2 Carbon emissions as an externality -Assume that the private supply is 'Supply 1' and the supply including tax is 'Supply 2' (Exhibit 10.2). What is the reduction in the output after the carbon tax was imposed?

Narrbegin Exhibit 10.3 Price and demand for permits data Price Quantity 10 110 20 100 30 90 40 80 50 70 60 60 Narrend -In Exhibit 10.3, if the 'cap' is set at 80 permits, and the demand for the permits decreased by 10 units at each price level, the resulting price of permits is equal to:

Long-term changes in the world's climate are believed to be caused partly by:

Which of the following statements is true?

Narrbegin Exhibit 10.3 Price and demand for permits data Price Quantity 10 110 20 100 30 90 40 80 50 70 60 60 Narrend -In Exhibit 10.3, if the 'cap' is set at 80 permits, the resulting market price of permits is:

Narrbegin Exhibit 10.4 The market for permits -In Exhibit 10.4, suppose that there is a slowdown in the economy. That is illustrated by:

The estimates of prices for a permit to emit one tonne of carbon followed by the introduction of a 'cap and trade' scheme have been:

Australian governments have argued that:

The carbon tax has to be set at the ________ level.

Chapter 10 of the textbook refers to 'ETS' as:

Thinking Like an Economist

Applying Graphs to Economics

Production Possibilities and Opportunity Cost

Market Demand and Supply

Markets in Action

Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Measuring the Size of the Economy

Business Cycles and Economic Growth

Inflation and Unemployment

A Simple Model of the Macro Economy

The Monetary and Financial System

Macroeconomic Policy I: Monetary Policy

Macroeconomic Policy II: Fiscal Policy

International Trade and Finance

Filters

Exam 11: Policy Issues: Housing Affordability and Climate Change

If the carbon tax is imposed in order to reduce the emissions, it will:

The objective of the carbon tax is to encourage more production using carbon intensive technologies.

An alternative approach to carbon tax is:

If the pollution control costs are low but the carbon tax is high, firms are encouraged to:

Regulation can encourage firms to:

Narrbegin Exhibit 10.2 Carbon emissions as an externality -In Exhibit 10.2, what is the price of carbon intensive outputs if the supply is 'Supply 1'?

The absence of the external costs of carbon emissions in the price of electricity means that:

Narrbegin Exhibit 10.2 Carbon emissions as an externality -Suppose the government imposed a carbon tax to reduce carbon emissions. How is it illustrated in Exhibit 10.2?

Firms wanting to emit carbon dioxide have to:

Narrbegin Exhibit 10.2 Carbon emissions as an externality -Assume that the private supply is 'Supply 1' and the supply including tax is 'Supply 2' (Exhibit 10.2). What is the reduction in the output after the carbon tax was imposed?

Narrbegin Exhibit 10.3 Price and demand for permits data Price Quantity 10 110 20 100 30 90 40 80 50 70 60 60 Narrend -In Exhibit 10.3, if the 'cap' is set at 80 permits, and the demand for the permits decreased by 10 units at each price level, the resulting price of permits is equal to:

Long-term changes in the world's climate are believed to be caused partly by:

Which of the following statements is true?

Narrbegin Exhibit 10.3 Price and demand for permits data Price Quantity 10 110 20 100 30 90 40 80 50 70 60 60 Narrend -In Exhibit 10.3, if the 'cap' is set at 80 permits, the resulting market price of permits is:

Narrbegin Exhibit 10.4 The market for permits -In Exhibit 10.4, suppose that there is a slowdown in the economy. That is illustrated by:

The estimates of prices for a permit to emit one tonne of carbon followed by the introduction of a 'cap and trade' scheme have been:

Australian governments have argued that:

The carbon tax has to be set at the ________ level.

Chapter 10 of the textbook refers to 'ETS' as:

Thinking Like an Economist

Applying Graphs to Economics

Production Possibilities and Opportunity Cost

Market Demand and Supply

Markets in Action

Elasticity of Demand and Supply

Production Costs

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Measuring the Size of the Economy

Business Cycles and Economic Growth

Inflation and Unemployment

A Simple Model of the Macro Economy

The Monetary and Financial System

Macroeconomic Policy I: Monetary Policy

Macroeconomic Policy II: Fiscal Policy

International Trade and Finance

Filters