Question 1

An example of a command-and-control policy is

Accepted Answer

A) public lands and wildlife. 
B) ITQs. 
C) the federal taxes on gasoline. 
D) limits on production. 
A) public lands and wildlife. 
B) ITQs. 
C) the federal taxes on gasoline. 
D) limits on production. C

Question 2

Use the graph to answer questions  
-The change in marginal benefits moving from Point A to Point B illustrates

Accepted Answer

A) the Law of Diminishing Return. 
B) the Law of Increasing Total Cost. 
C) the Law of Diminishing Marginal Benefits. 
D) the Law of Increasing Marginal Costs. 
A) the Law of Diminishing Return. 
B) the Law of Increasing Total Cost. 
C) the Law of Diminishing Marginal Benefits. 
D) the Law of Increasing Marginal Costs. C

Question 3

When a negative externality exists the market experiences

Accepted Answer

A) a level of production less than optimal. 
B) a level of production that is greater than optimal. 
C) a level of production that equals optimal. 
D) a level of production where society maximizes benefits. 
A) a level of production less than optimal. 
B) a level of production that is greater than optimal. 
C) a level of production that equals optimal. 
D) a level of production where society maximizes benefits. B

Question 4

List and briefly explain three types of negative impacts from pollution.

Accepted Answer

Answers will vary.Possible responses inc

Question 5

Which of the following is a true statement?

Accepted Answer

A) Environmental economists work toward zero-pollution as a morally correct strategy for society. 
B) Environmental economists recognize that a zero-pollution level is not a feasible focus. 
C) Environmental economists accept a strategy of zero-pollution. 
D) Environmental economists accept a strategy of zero-pollution as long as marginal benefits are greater than marginal costs. 
A) Environmental economists work toward zero-pollution as a morally correct strategy for society. 
B) Environmental economists recognize that a zero-pollution level is not a feasible focus. 
C) Environmental economists accept a strategy of zero-pollution. 
D) Environmental economists accept a strategy of zero-pollution as long as marginal benefits are greater than marginal costs.

Question 6

Which of the following is an example of a market failure?

Accepted Answer

A) The local state football game is sold-out 
B) Because of concerns of impending storm threats, the local hardware store runs out of plywood 
C) Because of changes in mortgage loan requirements and regulations, fewer people qualify for mortgages 
D) The daily traffic jam on the commute to work 
A) The local state football game is sold-out 
B) Because of concerns of impending storm threats, the local hardware store runs out of plywood 
C) Because of changes in mortgage loan requirements and regulations, fewer people qualify for mortgages 
D) The daily traffic jam on the commute to work

Question 7

Consider the graph which represents a local power plant.The production process includes the dumping of waste in the local river.The level of output QPrivate

Accepted Answer

A) represents an efficient allocation of resources for the production of electricity. 
B) represents an overallocation of resources for the production of electricity. 
C) represents an underallocation of resources for the production of electricity. 
D) represents a cost-effective allocation of resources for the production of electricity. 
A) represents an efficient allocation of resources for the production of electricity. 
B) represents an overallocation of resources for the production of electricity. 
C) represents an underallocation of resources for the production of electricity. 
D) represents a cost-effective allocation of resources for the production of electricity.

Question 8

Describe the consequences to the market when a product is not produced at the optimal level?

Accepted Answer

If the production of a good results at a

Question 9

Social market costs include

Accepted Answer

A) private marginal costs. 
B) the negative externality present in the market. 
C) both the private marginal costs plus the negative externality present in the market. 
D) the private marginal costs minus the negative externality present in the market. 
A) private marginal costs. 
B) the negative externality present in the market. 
C) both the private marginal costs plus the negative externality present in the market. 
D) the private marginal costs minus the negative externality present in the market.

Question 10

This allows the use of dollars as a common measure of a comparison of benefits and costs of pollution.

Accepted Answer

A) diminishing marginal utility. 
B) increasing marginal cost. 
C) willingness to pay framework for marginal benefits. 
D) willingness to pay framework for marginal costs. 
A) diminishing marginal utility. 
B) increasing marginal cost. 
C) willingness to pay framework for marginal benefits. 
D) willingness to pay framework for marginal costs.

Question 11

Pollution is an example of

Accepted Answer

A) a positive externality. 
B) a negative externality. 
C) marginal benefit. 
D) marginal cost. 
A) a positive externality. 
B) a negative externality. 
C) marginal benefit. 
D) marginal cost.

Question 12

The government sells permits that allow producers to emit a particular amount of pollution which can be bought and sold among producers is known as

Accepted Answer

A) command-and-control regulations. 
B) common property resources. 
C) cap and trade systems. 
D) tradable pollution rights. 
A) command-and-control regulations. 
B) common property resources. 
C) cap and trade systems. 
D) tradable pollution rights.

Question 13

External costs can be defined as

Accepted Answer

A) the difference between costs to the producer from production and the costs to society from the production of a good. 
B) the difference between the costs to society and the private benefits of production. 
C) the difference between the private costs of production and the private benefits of production. 
D) the difference between the marginal social costs and marginal benefits. 
A) the difference between costs to the producer from production and the costs to society from the production of a good. 
B) the difference between the costs to society and the private benefits of production. 
C) the difference between the private costs of production and the private benefits of production. 
D) the difference between the marginal social costs and marginal benefits.

Question 14

When a resource has no direct price

Accepted Answer

A) overuse of the resource and the tragedy of the commons may occur. 
B) overuse of resources and underproduction will occur. 
C) pollution occurs. 
D) underallocation of resources may occur. 
A) overuse of the resource and the tragedy of the commons may occur. 
B) overuse of resources and underproduction will occur. 
C) pollution occurs. 
D) underallocation of resources may occur.

Question 15

A system of pollution reduction that allows producers to emit a specific amount of pollutants is known as

Accepted Answer

A) ITQs. 
B) tradable pollution rights. 
C) common property resources. 
D) cap and trade systems. 
A) ITQs. 
B) tradable pollution rights. 
C) common property resources. 
D) cap and trade systems.

Question 16

A negative externality occurs when

Accepted Answer

A) costs of production are imposed on third parties. 
B) costs of distribution are imposed on third parties. 
C) benefits of the product are passed on to third parties. 
D) both costs of distribution are imposed on third parties and benefits of the product are passed on to third parties. 
A) costs of production are imposed on third parties. 
B) costs of distribution are imposed on third parties. 
C) benefits of the product are passed on to third parties. 
D) both costs of distribution are imposed on third parties and benefits of the product are passed on to third parties.

Question 17

Marginal costs born only by the producer is known as

Accepted Answer

A) private marginal costs. 
B) private total costs. 
C) social marginal costs. 
D) social total costs. 
A) private marginal costs. 
B) private total costs. 
C) social marginal costs. 
D) social total costs.

Question 18

A negative to the command-and-control approaches to reducing pollution would include all of the following except

Accepted Answer

A) the lack of efficiency because of the government intervention. 
B) the lack of flexibility. 
C) the expense of regulation. 
D) the unpopularity. 
A) the lack of efficiency because of the government intervention. 
B) the lack of flexibility. 
C) the expense of regulation. 
D) the unpopularity.

Question 19

When the market system does not generate the optimal, or efficient, allocation of goods and services a ___________________ occurs.

Accepted Answer

A) public good 
B) private good 
C) market instability 
D) market failure 
A) public good 
B) private good 
C) market instability 
D) market failure

Question 20

Pollution is defined as

Accepted Answer

A) the contamination of the ground causing disruption to ecosystems. 
B) the contamination of the ground and sky causing disruption to production. 
C) the contamination of the environment that creates inefficiency to production. 
D) the contamination of the environment that causes instability, harm, or disruption to ecosystems. 
A) the contamination of the ground causing disruption to ecosystems. 
B) the contamination of the ground and sky causing disruption to production. 
C) the contamination of the environment that creates inefficiency to production. 
D) the contamination of the environment that causes instability, harm, or disruption to ecosystems.

Exam 16: Pollution, the Environment, and Global Warming

An example of a command-and-control policy is

Use the graph to answer questions -The change in marginal benefits moving from Point A to Point B illustrates

When a negative externality exists the market experiences

List and briefly explain three types of negative impacts from pollution.

Which of the following is a true statement?

Which of the following is an example of a market failure?

Consider the graph which represents a local power plant.The production process includes the dumping of waste in the local river.The level of output QPrivate

Describe the consequences to the market when a product is not produced at the optimal level?

Social market costs include

This allows the use of dollars as a common measure of a comparison of benefits and costs of pollution.

Pollution is an example of

The government sells permits that allow producers to emit a particular amount of pollution which can be bought and sold among producers is known as

External costs can be defined as

When a resource has no direct price

A system of pollution reduction that allows producers to emit a specific amount of pollutants is known as

A negative externality occurs when

Marginal costs born only by the producer is known as

A negative to the command-and-control approaches to reducing pollution would include all of the following except

When the market system does not generate the optimal, or efficient, allocation of goods and services a ___________________ occurs.

Pollution is defined as

An Introduction to the Economic Way of Thinking

Production Possibilities

Demand Supply

Consumer Surplus, Producer Surplus, and Economic Efficiency

Elasticity

Measuring Economic Activity

Inflation and the Measurement of Prices

The Power and Limits of Markets

Wage Determination and Superstar Salaries

The Minimum Wage

International Trade of Goods

Immigration and the International Trade of Labor

Foreign Exchange and the International Trade of Money

Farm Policy

The Economics of Illegal Drugs

The Economics of Education

Competition and Monopoly

The Economics of Labor Market Discrimination

Poverty and the Distribution of Income

The Economics of Health Care

Monetary Policy and the Federal Reserve

Fiscal Policy and the Federal Budget

Filters

Consider the graph which represents a local power plant.The production process includes the dumping of waste in the local river.The level of output Q_Private