Question 1

The main cause of pollution since the 1950s are

Accepted Answer

A) naturally occurring. 
B) anthropogenic in nature. 
C) both naturally occurring and anthropogenic in nature. 
D) equally caused by nature and anthropogenic. 
A) naturally occurring. 
B) anthropogenic in nature. 
C) both naturally occurring and anthropogenic in nature. 
D) equally caused by nature and anthropogenic.

Question 2

Under cap and trade systems

Accepted Answer

A) an upper limit is set that sets the marginal social costs equal to the marginal benefits of emissions. 
B) an upper limit that sets marginal private costs equal to the marginal private benefits of emissions. 
C) an upper limit that sets marginal social costs equal to the marginal private benefits of production. 
D) an upper limit that sets marginal private costs equal to the marginal social benefits of production. 
A) an upper limit is set that sets the marginal social costs equal to the marginal benefits of emissions. 
B) an upper limit that sets marginal private costs equal to the marginal private benefits of emissions. 
C) an upper limit that sets marginal social costs equal to the marginal private benefits of production. 
D) an upper limit that sets marginal private costs equal to the marginal social benefits of production.

Question 3

Marginal costs that are born by society as a whole 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 4

Collectively owned resources are 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 5

A method of environmental preservation that does not rely on continual government intervention is

Accepted Answer

A) tragedy of the commons. 
B) command-and-control. 
C) assignment of property rights. 
D) emission limits. 
A) tragedy of the commons. 
B) command-and-control. 
C) assignment of property rights. 
D) emission limits.

Question 6

Policy response to pollution that involves direct government regulation is known as

Accepted Answer

A) command-and-control. 
B) assignment of property rights. 
C) pollution abatements. 
D) common property resources. 
A) command-and-control. 
B) assignment of property rights. 
C) pollution abatements. 
D) common property resources.

Question 7

Use the following graph to answer questions   
-Consider the graph that illustrates the production of electricity where not all of the costs of production are captured in the private costs.Which of the following statements is true?

Accepted Answer

A) An output of QPrivate provides an optimal allocation of resources to the market. 
B) An output of QPrivate provides an efficient allocation of resources to the market. 
C) An output of QSocial provides an optimal allocation of resources to the market. 
D) An output of QPrivate minus QSocial provides an efficient allocation of resources to the market. 
A) An output of QPrivate provides an optimal allocation of resources to the market. 
B) An output of QPrivate provides an efficient allocation of resources to the market. 
C) An output of QSocial provides an optimal allocation of resources to the market. 
D) An output of QPrivate minus QSocial provides an efficient allocation of resources to the market.

Question 8

Policy responses to pollution can be classified as

Accepted Answer

A) command-and-control. 
B) assignment of property rights. 
C) command-and-control and assignment of property rights. 
D) fees and taxes. 
A) command-and-control. 
B) assignment of property rights. 
C) command-and-control and assignment of property rights. 
D) fees and taxes.

Question 9

The optimal level of pollution is where

Accepted Answer

A) total profit is maximized for the producer. 
B) marginal profit is maximized for the producer. 
C) marginal benefits of control of the pollution equals marginal costs. 
D) the marginal benefits of production equals the marginal social costs of production. 
A) total profit is maximized for the producer. 
B) marginal profit is maximized for the producer. 
C) marginal benefits of control of the pollution equals marginal costs. 
D) the marginal benefits of production equals the marginal social costs of production.

Question 10

Examples) of command-and-control methods of pollution reduction include

Accepted Answer

A) taxes and fees equal to the amount of the negative externality. 
B) common property resources for collectively owned resources. 
C) ITQs for the collectively owned resources. 
D) tradable pollution rights. 
A) taxes and fees equal to the amount of the negative externality. 
B) common property resources for collectively owned resources. 
C) ITQs for the collectively owned resources. 
D) tradable pollution rights.

Question 11

Use the following graph to answer questions   
-Consider the graph.A negative externality is represented by

Accepted Answer

A) the difference between QPrivate and QSocial. 
B) the difference between PPrivate and PSocial. 
C) the difference between SMCPrivate) and SMCSocial). 
D) the difference between MBPrivate and MBSocial. 
A) the difference between QPrivate and QSocial. 
B) the difference between PPrivate and PSocial. 
C) the difference between SMCPrivate) and SMCSocial). 
D) the difference between MBPrivate and MBSocial.

Question 12

When benefits are experienced by someone other than the consumer a ______________ occurs.

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 13

Consider the graph of the marginal costs of producing electricity.After point A this is observed in the production process.

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.

Question 14

Use the graph to answer questions  
-The downward slope of the curve reflects

Accepted Answer

A) The inverse relationship between price and quantity demanded. 
B) the direct relationship between price and quantity demanded. 
C) the direct relationship between price and demand. 
D) the inverse relationship between price and demand. 
A) The inverse relationship between price and quantity demanded. 
B) the direct relationship between price and quantity demanded. 
C) the direct relationship between price and demand. 
D) the inverse relationship between price and demand.

Question 15

Marginal benefits from producing a product that creates pollution includes

Accepted Answer

A) revenue to the producer. 
B) a desired product to consumers. 
C) both revenue to the producer and a desired product to consumers. 
D) social costs to consumers. 
A) revenue to the producer. 
B) a desired product to consumers. 
C) both revenue to the producer and a desired product to consumers. 
D) social costs to consumers.

The main cause of pollution since the 1950s are

Under cap and trade systems

Marginal costs that are born by society as a whole is known as

Collectively owned resources are known as

A method of environmental preservation that does not rely on continual government intervention is

Policy response to pollution that involves direct government regulation is known as

Use the following graph to answer questions -Consider the graph that illustrates the production of electricity where not all of the costs of production are captured in the private costs.Which of the following statements is true?

Policy responses to pollution can be classified as

The optimal level of pollution is where

Examples) of command-and-control methods of pollution reduction include

Use the following graph to answer questions -Consider the graph.A negative externality is represented by

When benefits are experienced by someone other than the consumer a ______________ occurs.

Consider the graph of the marginal costs of producing electricity.After point A this is observed in the production process.

Use the graph to answer questions -The downward slope of the curve reflects

Marginal benefits from producing a product that creates pollution includes

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

Exam 16: Pollution, the Environment, and Global Warming

The main cause of pollution since the 1950s are

Under cap and trade systems

Marginal costs that are born by society as a whole is known as

Collectively owned resources are known as

A method of environmental preservation that does not rely on continual government intervention is

Policy response to pollution that involves direct government regulation is known as

Use the following graph to answer questions -Consider the graph that illustrates the production of electricity where not all of the costs of production are captured in the private costs.Which of the following statements is true?

Policy responses to pollution can be classified as

The optimal level of pollution is where

Examples) of command-and-control methods of pollution reduction include

Use the following graph to answer questions -Consider the graph.A negative externality is represented by

When benefits are experienced by someone other than the consumer a ______________ occurs.

Consider the graph of the marginal costs of producing electricity.After point A this is observed in the production process.

Use the graph to answer questions -The downward slope of the curve reflects

Marginal benefits from producing a product that creates pollution includes

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