Question 1

Regulations that strictly limit pollution

Accepted Answer

A) provide firms no incentives to reduce pollution once a standard is met. 
B) provide incentives for firms to discover loopholes in the regulations. 
C) tend to be economically inefficient ways to reduce pollution. 
D) All of the above are true. 
A) provide firms no incentives to reduce pollution once a standard is met. 
B) provide incentives for firms to discover loopholes in the regulations. 
C) tend to be economically inefficient ways to reduce pollution. 
D) All of the above are true.

Question 2

Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?

Accepted Answer

A) Taxes on pollution 
B) Voluntary compliance 
C) Tradable emissions permits 
D) Direct controls like legal ceilings 
A) Taxes on pollution 
B) Voluntary compliance 
C) Tradable emissions permits 
D) Direct controls like legal ceilings

Question 3

A government currently uses price controls to hold down the price of zinc, an exhaustible resource.If price controls are removed,

Accepted Answer

A) production of zinc will probably fall. 
B) zinc mines with high marginal cost of production will probably stop producing. 
C) consumers of zinc will probably want substitutes for zinc. 
D) income will probably be redistributed from zinc producers to zinc consumers. 
A) production of zinc will probably fall. 
B) zinc mines with high marginal cost of production will probably stop producing. 
C) consumers of zinc will probably want substitutes for zinc. 
D) income will probably be redistributed from zinc producers to zinc consumers.

Question 4

Externalities can create a threat to environmental quality.

Accepted Answer

A) True 
 B)False

Question 5

The invention of new mining methods will affect price through the supply side.

Accepted Answer

A) True 
 B)False

Question 6

Rising prices for a natural resource stimulate

Accepted Answer

A) the development of complements for the resource. 
B) the development of substitutes for the resource. 
C) the development of externalities from the resource. 
D) All of the above are correct. 
A) the development of complements for the resource. 
B) the development of substitutes for the resource. 
C) the development of externalities from the resource. 
D) All of the above are correct.

Question 7

Environmental quality is

Accepted Answer

A) a public good. 
B) best improved through government's prohibiting externalities. 
C) maximized when costs of pollution are external. 
D) minimized when optimal levels of pollution are produced. 
A) a public good. 
B) best improved through government's prohibiting externalities. 
C) maximized when costs of pollution are external. 
D) minimized when optimal levels of pollution are produced.

Question 8

Emissions permits allow polluters to pay for the right to pollute a specified amount.

Accepted Answer

A) True 
 B)False

Question 9

Economists believe that externalities can be cured by market methods.

Accepted Answer

A) True 
 B)False

Question 10

Briefly and concisely define the following terms.
a.voluntarism
b.direct controls
c.depletable resource

Accepted Answer

a.Voluntarism refers to a number of nonm

Question 11

Most economists agree that exclusive reliance on direct controls

Accepted Answer

A) is a sound approach. 
B) has worked well for us in the past. 
C) is cheaper than any other enforcement mechanism. 
D) is a mistake. 
A) is a sound approach. 
B) has worked well for us in the past. 
C) is cheaper than any other enforcement mechanism. 
D) is a mistake.

Question 12

Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.

Accepted Answer

A) True 
 B)False

Question 13

The supply curve of a natural resource like oil has a positive slope because

Accepted Answer

A) the supply becomes closer to exhaustion as demand rises. 
B) it becomes more costly to find and develop supplies as demand rises. 
C) rents rise as output increases. 
D) indirect taxes rise with output. 
A) the supply becomes closer to exhaustion as demand rises. 
B) it becomes more costly to find and develop supplies as demand rises. 
C) rents rise as output increases. 
D) indirect taxes rise with output.

Question 14

During the second Bush administration, environmental fines and prosecutions

Accepted Answer

A) increased rapidly. 
B) declined significantly. 
C) grew with the rate of inflation. 
D) declined slightly from earlier levels. 
A) increased rapidly. 
B) declined significantly. 
C) grew with the rate of inflation. 
D) declined slightly from earlier levels.

Question 15

Which of the following is an example of detrimental externality?

Accepted Answer

A) A trailer's entry onto an overcrowded road that delays the movement of other vehicles. 
B) Fall in demand for gasoline in the US softens the price of gasoline in the global market. 
C) Government investment in energy generation from non-conventional sources. 
D) Society devotes huge quantity of its scarce resources for vital innovative activity. 
A) A trailer's entry onto an overcrowded road that delays the movement of other vehicles. 
B) Fall in demand for gasoline in the US softens the price of gasoline in the global market. 
C) Government investment in energy generation from non-conventional sources. 
D) Society devotes huge quantity of its scarce resources for vital innovative activity.

Question 16

The pricing system has a failure built into it when externalities exist.

Accepted Answer

A) True 
 B)False

Regulations that strictly limit pollution

Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?

A government currently uses price controls to hold down the price of zinc, an exhaustible resource.If price controls are removed,

Externalities can create a threat to environmental quality.

The invention of new mining methods will affect price through the supply side.

Rising prices for a natural resource stimulate

Environmental quality is

Emissions permits allow polluters to pay for the right to pollute a specified amount.

Economists believe that externalities can be cured by market methods.

Briefly and concisely define the following terms. a.voluntarism b.direct controls c.depletable resource

Most economists agree that exclusive reliance on direct controls

Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.

The supply curve of a natural resource like oil has a positive slope because

During the second Bush administration, environmental fines and prosecutions

Which of the following is an example of detrimental externality?

The pricing system has a failure built into it when externalities exist.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand an Initial Look

Consumer Choice Individual and Market Demand

Demand and Elasticity

Production Inputs and Cost Building Blocks for Supply Analysis

Output Price and Profit the Importance of Marginal Analysis

Securities Business Finance and the Economy the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power Regulation and Antitrust

The Case for Free Markets the Price System

The Shortcomings of Free Markets

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship the Human Inputs

Poverty Inequality and Discrimination

Is Us Economic Leadership Threatened

International Trade and Comparative Advantage

Filters

Exam 16: Externalities the Environment and Natural Resources

Regulations that strictly limit pollution

Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?

A government currently uses price controls to hold down the price of zinc, an exhaustible resource.If price controls are removed,

Externalities can create a threat to environmental quality.

The invention of new mining methods will affect price through the supply side.

Rising prices for a natural resource stimulate

Environmental quality is

Emissions permits allow polluters to pay for the right to pollute a specified amount.

Economists believe that externalities can be cured by market methods.

Briefly and concisely define the following terms. a.voluntarism b.direct controls c.depletable resource

Most economists agree that exclusive reliance on direct controls

Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.

The supply curve of a natural resource like oil has a positive slope because

During the second Bush administration, environmental fines and prosecutions

Which of the following is an example of detrimental externality?

The pricing system has a failure built into it when externalities exist.

What Is Economics

The Economy Myth and Reality

The Fundamental Economic Problem Scarcity and Choice

Supply and Demand an Initial Look

Consumer Choice Individual and Market Demand

Demand and Elasticity

Production Inputs and Cost Building Blocks for Supply Analysis

Output Price and Profit the Importance of Marginal Analysis

Securities Business Finance and the Economy the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

Monopoly

Between Competition and Monopoly

Limiting Market Power Regulation and Antitrust

The Case for Free Markets the Price System

The Shortcomings of Free Markets

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship the Human Inputs

Poverty Inequality and Discrimination

Is Us Economic Leadership Threatened

International Trade and Comparative Advantage

Filters