Exam 16: Externalities the Environment and Natural Resources

The government prefers a market-based approach to reduce firms' emissions of a toxic gas but wants to make certain that no more than 1,000 cubic yards of the gas are ever emitted in a single day.The most efficient policy under these circumstances is likely to be a system of

Major contributors to pollution are

One of the conclusions of A.C.Pigou was that

The worst and most difficult to extract resources are used first.

Define the following terms and explain their importance to the study of economics. a.greenhouse gases b.externality c.emissions permits d.known reserves

If a depletable resource is selling in a perfectly competitive market, its price will rise by greater and greater dollar amounts each year.

Direct controls have a clear advantage when a total ban is necessary.

There has been a downward trend in the United States since 1980 in the ambient concentrations of

Pollution taxes are preferred to direct controls because they don't require a way of measuring pollutants produced.

Direct controls that impose equal percentage reductions in emissions on all firms in the area

Forecasts of an inevitable exhaustion of essential natural resources are "simply beside the point" because higher prices

Why do polluting firms overproduce? Use a completely and correctly labeled graph to illustrate your answer.

Rising prices of resources leads to inefficient resource use by industry.

Dwindling resources encourage the development of substitute products.

Describe how a pollution-control authority might use an emissions permits system to reduce pollution.

Voluntary programs for reducing pollution

Which of the following environmental approaches is most appropriate when surveillance and enforcement is impractical?

John Maynard Keynes was the author of the book, The Economics of Welfare, which first addressed environmental problems in terms of externalities. ​

The use of pollution charges to reduce pollution confronts the problem of

The Army Corps of Engineers has been accused of acting on the basis of a so-called "edifice complex."