Exam 12: Environmental Protection and Negative Externalities

Provide examples of market-oriented environmental policies.

In circumstances involving millions of emitters of small amounts of pollution who have no strong interest in trading, _______ will typically offer a better choice for achieving desired reductions of environmental pollution levels.

Give examples of global environmental issues that affect national borders and briefly explain how these issues are addressed.

The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby river is given in the table below. The equilibrium price and quantity when social costs are taken into account are

Which of the following has become the least willing to sacrifice their environmental quality for some additional economic output?

Ireland and England both fish in the Irish Sea. If this sea is over-fished, the fish stocks will fall and fish will eventually become extinct. Both countries have to decide whether to fish a lot or a little. The payoffs are given in the table below. The outcome of this game is _______, which illustrates the _______.

Rather than arguing over whether the ultimate goal is zero pollution or a reasonable level of pollution, the immediate focus should be to tackle the environmental issues where the _______ And the _______.

Which of the following is viewed as a fundamental building block of the U.S. economic way of thinking?

One concern that environmentalists have is that market-oriented environmental tools are

If an externality of pollution exists for all manufacturers in a given industry, then all related social costs

Kip and Yale run separate mining companies in the same forest. Both pollute the river flowing through the forest with debris from their work. In the table below, the first row shows the current level of debris that makes its way into the river from their work. The following table set out information that shows how much it would cost each company to reduce its pollution by additional increments of 10 pounds. If each mining company is forced to cut its debris in half, the respective cost to Kip and Yale will be

Market-oriented environmental tools _______ for firms to take the social costs of pollution into account and _______ in reacting to these incentives.

A _______ would lead a large greenhouse gas emitter to reduce emissions by less.

Identify and briefly explain what market-orinted environmental policies make use of in order to reduce pollution.

With respect to the benefits of clean air and water, which of the following would most likely be classified as being relatively easy to value in economic terms?

In the U.S., the command-and-control environmental laws of the early 1970s, together with the ensuing amendments and updates that have been made to them over time,

Carl and Don run separate chemical fertilizer manufacturing companies in the same industrial park. Both pollute the river flowing through the industrial park with waste from their manufacturing processes. In the table below, the first row shows the current level of waste that makes its way into the river from their respective operations. The table also sets out information that indicates how much it would cost each manufacturer to reduce its pollution by additional increments of 10 pounds. If each company is required to reduce debris by exactly 20 pounds, the total cost will be

When the quantity of environmental protection is low so that pollution is extensive, then there are usually _______ to reduce pollution and the _______.

Briefly explain what market-oriented environmental tools offer.

A country is currently creating 40 million tons of toxic waste per year. The table below shows the marginal costs and benefits of reducing the amount of toxic waste to various amounts. What level of toxic waste should the country reduce to?