Question 1

If motorists gain $8 in benefits when carbon monoxide emissions are reduced from 10 pounds to 9 pounds and $5 when they are reduced from 9 pounds to 8 pounds, the marginal cost of the 10th pound of carbon monoxide is:

Accepted Answer

A)  $3. 
B)  $5. 
C)  $8. 
D)  $9.

Question 2

Use the following to answer question(s): Efficiency and Pollution
 
-(Exhibit: Efficiency and Pollution) If there is too much pollution in this market, the result is most likely at a point such as:

Accepted Answer

A)  A. 
B)  B. 
C)  C. 
D)  E.

Question 3

In general, if the level of the marginal cost of pollution damage equals the marginal cost of pollution abatement, then:

Accepted Answer

A)  economic efficiency is achieved. 
B)  economic efficiency is not achieved. 
C)  the level of pollution is zero. 
D)  marginal cost of abatement is greater than marginal cost of damages.

Question 4

Use the following to answer question(s): Pollution Abatement and Emissions
 
-(Exhibit: Pollution Abatement and Emissions) An efficient level of pollution emissions:

Accepted Answer

A)  is simply nonsense. 
B)  is at level S. 
C)  is at level U. 
D)  is at level 0.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

The proposition that if property rights are well defined and if bargaining is costless, then the private market can achieve an efficient outcome regardless of which of the affected parties hold the property rights is known as the:

Accepted Answer

A)  Coase theorem. 
B)  property rights paradigm. 
C)  market rights theorem. 
D)  green environment paradigm.

Question 7

Discuss the benefits and the costs of pollution.

Accepted Answer

The answer of Discuss the benefits and the costs of...

Question 8

Use the following to answer question(s): Efficiency and Pollution
 
-(Exhibit: Efficiency and Pollution) An efficient solution is where:

Accepted Answer

A)  MB < MC. 
B)  MC < MB. 
C)  total cost = total benefit. 
D)  MC = MB.

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

If it costs motorists $1 to reduce carbon monoxide emissions from 10 pounds to 9 pounds and $3 to reduce them from 9 pounds to 8 pounds, the marginal benefit of the 9th pound of carbon monoxide is:

Accepted Answer

A)  $1. 
B)  $3. 
C)  $8. 
D)  $9.

Question 13

If motorists gain $8 in benefits when carbon monoxide emissions are reduced from 10 pounds to 9 pounds and $5 when they are reduced from 9 pounds to 8 pounds, the marginal cost of the 9th pound of carbon monoxide is:

Accepted Answer

A)  $3. 
B)  $5. 
C)  $8. 
D)  $9.

Question 14

Pollution has _______ and _______ .

Accepted Answer

A)  no benefits; only costs 
B)  benefits; costs 
C)  no opposition; only advocates 
D)  short-term impacts; very little long-term impact

Question 15

The most widely used approach to pollution control by government in the U.S.is command and control.

Accepted Answer

A) True 
 B)False

Question 16

Damage to the environment occurs because in the process of obtaining goods and services we enjoy, pollution occurs.

Accepted Answer

A) True 
 B)False

Question 17

Command and control is the favored approach to pollution control of economists.

Accepted Answer

A) True 
 B)False

Question 18

To be effective, emissions taxes need to be higher than the marginal cost of emissions.

Accepted Answer

A) True 
 B)False

Question 19

Economists examine pollution from the perspective of the:

Accepted Answer

A)  preferences of people. 
B)  intensity and duration of the harm to resources. 
C)  desires of government bureaucrats. 
D)  intent of business firms in the maximization of profits.

Question 20

An advantage of marketable pollution rights is that they:

Accepted Answer

A)  raises costs to firms rather than consumers. 
B)  keep the overall level of pollution constant, regardless of industry growth. 
C)  give the government much more control. 
D)  increase the amount of pollution, but at low cost.

Exam 18: The Economics of the Environment

If motorists gain $8 in benefits when carbon monoxide emissions are reduced from 10 pounds to 9 pounds and $5 when they are reduced from 9 pounds to 8 pounds, the marginal cost of the 10th pound of carbon monoxide is:

Use the following to answer question(s) : Efficiency and Pollution -(Exhibit: Efficiency and Pollution) If there is too much pollution in this market, the result is most likely at a point such as:

In general, if the level of the marginal cost of pollution damage equals the marginal cost of pollution abatement, then:

Use the following to answer question(s) : Pollution Abatement and Emissions -(Exhibit: Pollution Abatement and Emissions) An efficient level of pollution emissions:

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

The proposition that if property rights are well defined and if bargaining is costless, then the private market can achieve an efficient outcome regardless of which of the affected parties hold the property rights is known as the:

Discuss the benefits and the costs of pollution.

Use the following to answer question(s) : Efficiency and Pollution -(Exhibit: Efficiency and Pollution) An efficient solution is where:

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

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

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

If it costs motorists $1 to reduce carbon monoxide emissions from 10 pounds to 9 pounds and $3 to reduce them from 9 pounds to 8 pounds, the marginal benefit of the 9th pound of carbon monoxide is:

If motorists gain $8 in benefits when carbon monoxide emissions are reduced from 10 pounds to 9 pounds and $5 when they are reduced from 9 pounds to 8 pounds, the marginal cost of the 9th pound of carbon monoxide is:

Pollution has _ and _ .

The most widely used approach to pollution control by government in the U.S.is command and control.

Damage to the environment occurs because in the process of obtaining goods and services we enjoy, pollution occurs.

Command and control is the favored approach to pollution control of economists.

To be effective, emissions taxes need to be higher than the marginal cost of emissions.

Economists examine pollution from the perspective of the:

An advantage of marketable pollution rights is that they: