Question 1

Under the private property rights approach to pollution control,the industry or firm that most "values" the right to the environment will control environmental services.

Accepted Answer

A) True 
 B)False

Question 2

Explicit costs are equal to the value of self-owned resources.

Accepted Answer

A) True 
 B)False

Question 3

The term "marginal social benefit" means

Accepted Answer

A)  Benefits that are just above the margin of being zero
B)  The entire benefits obtainable from the activity
C)  That part of the benefits covered by the costs of carrying on the activity
D)  The change in total social benefits per unit change in the amount of the activity
E)  The benefits of minimal quality goods and services

Question 4

Pollution regulation works well because economists,not politicians,are in charge of regulatory bodies.

Accepted Answer

A) True 
 B)False

Question 5

Enforcement is a problem with all methods of pollution regulation.

Accepted Answer

A) True 
 B)False

Question 6

Incentives to pollute stem from an absence of property rights in the environment and from the collectively consumed nature of whatever is being polluteD.

Accepted Answer

A) True 
 B)False

Question 7

The Following Questions Refer to the graph below. 1 D) X2 E) None of the above" class="answers-bank-image d-inline" rel="preload" >
-Given that the firm's demand and supply curves are D and S,respectively,which curve is the MSC curve for the polluting firm's product?

Accepted Answer

A)  D
B)  S
C)  X1
D)  X2
E)  None of the above

Question 8

Which of the following creates a negative externality in consumption?

Accepted Answer

A)  Polluting a river
B)  Playing loud music
C)  Vaccinations
D)  Reducing the cost of producing of another good
E)  Strip mining

Question 9

The creation of a market for pollution rights eliminates pollution where it is cheapest to do so.

Accepted Answer

A) True 
 B)False

Question 10

Those who suffer from pollution may find it to their advantage to

Accepted Answer

A)  Have the government enact legislation compelling the polluters to take antipollution measures
B)  Bribe the polluters to control their pollution
C)  Have the government tax pollution at a rate that increases with the amount of pollution generated
D)  Do all of the above
E)  Do none of the above

Question 11

The Following Questions Refer to the graph below. 1 B) Q2 C) Q3 D) 0 E) It cannot be determined" class="answers-bank-image d-inline" rel="preload" >
-What is the efficient quantity of the water-using firm's product?

Accepted Answer

A)  Q1
B)  Q2
C)  Q3
D)  0
E)  It cannot be determined

Question 12

Which of the following approaches would an economist propose to address industrial pollution of a river?

Accepted Answer

A)  Ban all dumping of pollutants near or into the river
B)  Limit each plant to a maximum amount of pollutant emission
C)  Charge each polluter a fixed amount for each unit of pollutant dumped into the river
D)  Direct pollution control regulation
E)  Command and control pollution regulation

Question 13

Which of the following best describes why pollution exists in the environment?

Accepted Answer

A)  The environment has no capacity to recycle waste
B)  All materials take a very long time to recycle in the environment
C)  No waste can be completely recycled
D)  Recycling processes fail to prevent wastes from accumulating in the environment
E)  The environment's capacity to recycle exceeds the rate of waste disposal

Question 14

Governmental regulations requiring anti-pollution devices on automobiles result in a decrease in the demand for automobiles and an increase in pricE.

Accepted Answer

A) True 
 B)False

Question 15

Whenever consumers are willing to pay more for an item than it costs to produce it,it is efficient to expand output.

Accepted Answer

A) True 
 B)False

Question 16

The Following Questions Refer to the graph below. 1,the benefit of increasing pollution is shown on the graph as a movement from A) A2 to A1 B) C2 to C1 C) q2 to q1 D) TT2 to TT1 E) C2 to 0" class="answers-bank-image d-inline" rel="preload" >
-Assuming that the economy is operating on the PPC TT1,the benefit of increasing pollution is shown on the graph as a movement from

Accepted Answer

A)  A2 to A1
B)  C2 to C1
C)  q2 to q1
D)  TT2 to TT1
E)  C2 to 0

Question 17

With tradable pollution licenses to control pollution,reductions in total pollution

Accepted Answer

A)  Can be achieved by having government buy back some of the licenses
B)  Can be achieved by having government sell more licenses
C)  Requires the government to buy back all existing licenses and re-issue new licenses
D)  Cannot be achieved
E)  Is never economically optimal

Question 18

The Following Questions Refer to the graph below. 1 D) X2 E) None of the above" class="answers-bank-image d-inline" rel="preload" >
-Which curve is the MSC curve for the water-using firm's product?

Accepted Answer

A)  D
B)  S
C)  X1
D)  X2
E)  None of the above

Question 19

When pollution rights markets are used,the overall level of pollution is reduced if the government sells additional licenses.

Accepted Answer

A) True 
 B)False

Question 20

Requiring automobiles to pass emissions tests before being allowed on the road is an example of a(n)

Accepted Answer

A)  Direct pollution control
B)  Indirect pollution control
C)  Pollution tax
D)  Market solution to pollution
E)  Positive externality in consumption

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

The Following Questions Refer to the graph below. -What is the efficient quantity of the water-using firm's product?

Correct AnswerverifiedShow Answer

Governmental regulations requiring anti-pollution devices on automobiles result in a decrease in the demand for automobiles and an increase in pricE.

Correct AnswerverifiedShow Answer

Enforcement is a problem with all methods of pollution regulation.

Correct AnswerverifiedShow Answer

With tradable pollution licenses to control pollution,reductions in total pollution

Correct AnswerverifiedShow Answer

When pollution rights markets are used,the overall level of pollution is reduced if the government sells additional licenses.

Correct AnswerverifiedShow Answer

Pollution regulation works well because economists,not politicians,are in charge of regulatory bodies.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -Given that the firm's demand and supply curves are D and S,respectively,which curve is the MSC curve for the polluting firm's product?

Correct AnswerverifiedShow Answer

Which of the following creates a negative externality in consumption?

Correct AnswerverifiedShow Answer

Whenever consumers are willing to pay more for an item than it costs to produce it,it is efficient to expand output.

Correct AnswerverifiedShow Answer

The creation of a market for pollution rights eliminates pollution where it is cheapest to do so.

Correct AnswerverifiedShow Answer

The term "marginal social benefit" means

Correct AnswerverifiedShow Answer

Those who suffer from pollution may find it to their advantage to

Correct AnswerverifiedShow Answer

Which of the following approaches would an economist propose to address industrial pollution of a river?

Correct AnswerverifiedShow Answer

Requiring automobiles to pass emissions tests before being allowed on the road is an example of a(n)

Correct AnswerverifiedShow Answer

Explicit costs are equal to the value of self-owned resources.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -Which curve is the MSC curve for the water-using firm's product?

Correct AnswerverifiedShow Answer

Under the private property rights approach to pollution control,the industry or firm that most "values" the right to the environment will control environmental services.

Correct AnswerverifiedShow Answer

Incentives to pollute stem from an absence of property rights in the environment and from the collectively consumed nature of whatever is being polluteD.

Correct AnswerverifiedShow Answer

The Following Questions Refer to the graph below. -Assuming that the economy is operating on the PPC TT1,the benefit of increasing pollution is shown on the graph as a movement from

Correct AnswerverifiedShow Answer

Which of the following best describes why pollution exists in the environment?

Correct AnswerverifiedShow Answer

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The Following Questions Refer to the graph below. -Assuming that the economy is operating on the PPC TT₁,the benefit of increasing pollution is shown on the graph as a movement from

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