Exam 17: Externalities and the Environment

When a citizens' group opposes expansion of the prison located in town, the basis of the opposition is that the larger prison will produce

Other things equal, if the government increased the quantity of pollution rights to be sold,

Among the 25 most developed countries in the world where does the United States rank in terms of recycling?

When using the economic efficiency approach to controlling air and water pollution, the government

When the benefits to society of using a product exceed benefits to the user,

Which of the following creates a positive externality?

According to the Coase theorem, if bargaining costs are small, then there will be an efficient solution to the problem of toxic waste

Which of the following is a positive externality of consumption?

To enhance social welfare, the government should encourage the production of

In order to increase society's well-being, a process that produces a positive externality might be

A person can cause a negative externality by

According to the Coase theorem, externality problems may be solved if the parties involved can negotiate. Which of the following is also needed?

Exhibit 17-9 -In Exhibit 17-9, the optimal water quality level is

The optimal level of air quality

The socially efficient level of output is determined where

Untreated raw sewage is dumped directly into rivers and oceans

Most water pollution in the United States comes from manufacturing sites.

The destruction of tropical rain forests results in

The Coase theorem argues that the assignment of property rights will generate an efficient solution to the problem of

The Coase solution to the problem of externalities