Question 1

Economists believe that the goal of environmental policy should be zero pollution.

Accepted Answer

A) True 
 B)False

Question 2

Explain why environmental damage would be classified as an externality.

Accepted Answer

An externality is an incidental conseque

Question 3

Voluntarism includes methods for dealing with pollution that

Accepted Answer

A) carry no legal authority. 
B) call the problems of pollution to the public's attention. 
C) involve trying to persuade polluters to reduce or eliminate pollution voluntarily. 
D) include all of the above. 
A) carry no legal authority. 
B) call the problems of pollution to the public's attention. 
C) involve trying to persuade polluters to reduce or eliminate pollution voluntarily. 
D) include all of the above.

Question 4

Taxing pollution will encourage firms to reduce pollutants dumped in the atmosphere or in streams.

Accepted Answer

A) True 
 B)False

Question 5

Unexpected discoveries of mineral reserves will ordinarily cause the price of these minerals to increase.

Accepted Answer

A) True 
 B)False

Question 6

Environmental problems occur exclusively in capitalist economies.

Accepted Answer

A) True 
 B)False

Question 7

Contrary to most thinking, governments play ____ in causing pollution.

Accepted Answer

A) almost no role 
B) a large but decreasing role 
C) a major role 
D) a reconstructive role 
A) almost no role 
B) a large but decreasing role 
C) a major role 
D) a reconstructive role

Question 8

An advantage emission taxes and permits have over direct controls is that the former

Accepted Answer

A) work well even if pollution output cannot be accurately measured. 
B) can respond quickly to new information about the dangers of particular pollutants. 
C) make it in firms' interests to reduce pollution in the most efficient manner possible. 
D) reduce pollution to zero. 
A) work well even if pollution output cannot be accurately measured. 
B) can respond quickly to new information about the dangers of particular pollutants. 
C) make it in firms' interests to reduce pollution in the most efficient manner possible. 
D) reduce pollution to zero.

Question 9

Interest in environmental problems has intensified, perhaps because

Accepted Answer

A) for the first time in history in the 1970s people began to die from pollution-related diseases. 
B) rising incomes have caused people to be more concerned with the quality of their lives. 
C) the centrally planned economies are polluted. 
D) All of the above are true. 
A) for the first time in history in the 1970s people began to die from pollution-related diseases. 
B) rising incomes have caused people to be more concerned with the quality of their lives. 
C) the centrally planned economies are polluted. 
D) All of the above are true.

Question 10

If a firm that emits a form of pollution is also a monopolist, is the firm more likely to be allocatively efficient? Explain.

Accepted Answer

Yes.A monopolist maximizes profit by red

Question 11

To protect the environment, governments in the United States have mainly used

Accepted Answer

A) legally enforceable direct controls on pollution. 
B) taxes on goods whose production creates pollution. 
C) direct taxes on emissions. 
D) discretionary guidelines suggested to polluting firms. 
A) legally enforceable direct controls on pollution. 
B) taxes on goods whose production creates pollution. 
C) direct taxes on emissions. 
D) discretionary guidelines suggested to polluting firms.

Question 12

Voluntary programs are dependable ways to protect the environment.

Accepted Answer

A) True 
 B)False

Question 13

There is concern that CFCs, a chemical by-product of refrigeration, are destroying Earth's protective ozone layer, leaving us more vulnerable to cataracts and skin cancer.Suppose each air conditioner creates 10 pounds of CFCs.The demand and supply of air conditioners follow:
What will be the free market price and quantity, and what will be the price and quantity if the government forces suppliers to pay a $100 tax for each air conditioner produced?

Accepted Answer

The free market equilibrium occurs at Q

Question 14

The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth and which protects humans from ultraviolet radiation.Output of this substance has been restricted by a licensing system where producers have to bid in the open market for licenses to produce them in specified quantities.This is an example of dealing with externalities by

Accepted Answer

A) voluntary compliance. 
B) direct controls. 
C) taxes. 
D) the market mechanism. 
A) voluntary compliance. 
B) direct controls. 
C) taxes. 
D) the market mechanism.

Question 15

Between 1980 and 2008 recycling in the United States has

Accepted Answer

A) decreased by less than 2%. 
B) increased by less than 2%. 
C) doubled. 
D) tripled. 
A) decreased by less than 2%. 
B) increased by less than 2%. 
C) doubled. 
D) tripled.

Question 16

Figure 17-3 from the textbook provides data on lead, zinc, and copper prices.These data suggest that these resources are not generally becoming more scarce in this century.Baumol and Blinder suggest that this price pattern for resources stems from three things: (1) unexpected discoveries of reserves whose existence was not previously suspected; (2) the invention of new methods of mining or refining, which significantly reduced extraction costs; and (3) price controls, which held some prices down or decreased them below what the market would have paid.
-How does the price system cope with depletable resources?

Accepted Answer

The rule is that under perfect competiti

Question 17

What are the advantages of a tax system for pollution control?

Accepted Answer

There are two main advantages of a tax s

Question 18

Statistical studies suggest that the cost of direct controls for any target level of pollution is

Accepted Answer

A) much higher than the cost of taxes on emissions. 
B) about the same as the cost of taxes on emissions. 
C) lower than the cost of taxes on emissions. 
D) impossible to compare to the cost of taxes on emissions. 
A) much higher than the cost of taxes on emissions. 
B) about the same as the cost of taxes on emissions. 
C) lower than the cost of taxes on emissions. 
D) impossible to compare to the cost of taxes on emissions.

Question 19

Who of the following has been prominently accused of acting on the basis of the "edifice complex?"

Accepted Answer

A) the Environmental Protection Agency? 
B) A.C.Pigou 
C) the Army Corps of Engineers 
D) environmental activists 
A) the Environmental Protection Agency? 
B) A.C.Pigou 
C) the Army Corps of Engineers 
D) environmental activists

Question 20

According to economic theory, under perfect competition, the price of a depletable resource whose costs of transportation and extraction are negligible

Accepted Answer

A) is a poor indicator of scarcity. 
B) must rise at the rate of interest. 
C) will be unable to change to avert running out of it. 
D) is too erratic to allow markets to respond to shortages. 
A) is a poor indicator of scarcity. 
B) must rise at the rate of interest. 
C) will be unable to change to avert running out of it. 
D) is too erratic to allow markets to respond to shortages.

Economists believe that the goal of environmental policy should be zero pollution.

Explain why environmental damage would be classified as an externality.

Voluntarism includes methods for dealing with pollution that

Taxing pollution will encourage firms to reduce pollutants dumped in the atmosphere or in streams.

Unexpected discoveries of mineral reserves will ordinarily cause the price of these minerals to increase.

Environmental problems occur exclusively in capitalist economies.

Contrary to most thinking, governments play ____ in causing pollution.

An advantage emission taxes and permits have over direct controls is that the former

Interest in environmental problems has intensified, perhaps because

If a firm that emits a form of pollution is also a monopolist, is the firm more likely to be allocatively efficient? Explain.

To protect the environment, governments in the United States have mainly used

Voluntary programs are dependable ways to protect the environment.

Between 1980 and 2008 recycling in the United States has

What are the advantages of a tax system for pollution control?

Statistical studies suggest that the cost of direct controls for any target level of pollution is

Who of the following has been prominently accused of acting on the basis of the "edifice complex?"

According to economic theory, under perfect competition, the price of a depletable resource whose costs of transportation and extraction are negligible

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

Economists believe that the goal of environmental policy should be zero pollution.

Explain why environmental damage would be classified as an externality.

Voluntarism includes methods for dealing with pollution that

Taxing pollution will encourage firms to reduce pollutants dumped in the atmosphere or in streams.

Unexpected discoveries of mineral reserves will ordinarily cause the price of these minerals to increase.

Environmental problems occur exclusively in capitalist economies.

Contrary to most thinking, governments play ____ in causing pollution.

An advantage emission taxes and permits have over direct controls is that the former

Interest in environmental problems has intensified, perhaps because

If a firm that emits a form of pollution is also a monopolist, is the firm more likely to be allocatively efficient? Explain.

To protect the environment, governments in the United States have mainly used

Voluntary programs are dependable ways to protect the environment.

Between 1980 and 2008 recycling in the United States has

What are the advantages of a tax system for pollution control?

Statistical studies suggest that the cost of direct controls for any target level of pollution is

Who of the following has been prominently accused of acting on the basis of the "edifice complex?"

According to economic theory, under perfect competition, the price of a depletable resource whose costs of transportation and extraction are negligible

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