Question 1

The environmental problems of the former Soviet Union

Accepted Answer

A)  were caused by a lack of central planning in the economy. 
B)  were caused by the communist utopian vision. 
C)  were caused by market forces operating in the socialist system. 
D)  stem from industrialization and not the communist planning system itself. 
A)  were caused by a lack of central planning in the economy. 
B)  were caused by the communist utopian vision. 
C)  were caused by market forces operating in the socialist system. 
D)  stem from industrialization and not the communist planning system itself.

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

Unregulated markets will tend to

Accepted Answer

A)  rapidly deplete any natural resource. 
B)  naturally conserve any depletable natural resource by pushing up its price every year by a constant dollar amount. 
C)  naturally conserve a depletable resource by pushing up its price at a constant rate every year. 
D)  deplete a resource unless new supplies are found. 
A)  rapidly deplete any natural resource. 
B)  naturally conserve any depletable natural resource by pushing up its price every year by a constant dollar amount. 
C)  naturally conserve a depletable resource by pushing up its price at a constant rate every year. 
D)  deplete a resource unless new supplies are found.

Question 4

Detrimental externalities like pollution are a shortcoming of the market mechanism.Do they occur in free market economies alone? Explain with examples.

Accepted Answer

Even though the detrimental externalitie

Question 5

By providing free garbage removal, a community

Accepted Answer

A)  discourages activities that produce detrimental externalities. 
B)  encourages citizens to recycle items rather than throw them out. 
C)  leads citizens to throw out more garbage than is socially optimal. 
D)  None of the above is correct. 
A)  discourages activities that produce detrimental externalities. 
B)  encourages citizens to recycle items rather than throw them out. 
C)  leads citizens to throw out more garbage than is socially optimal. 
D)  None of the above is correct.

Question 6

Pollution taxes are more efficient in cleaning up the environment than direct controls.What role is there for direct controls?

Accepted Answer

A)  They are useful standby mechanisms. 
B)  They are useful if it is decided to prohibit the substance altogether. 
C)  They are useful where dependable metering devices are not available or prohibitively costly to install. 
D)  All of the above are true. 
A)  They are useful standby mechanisms. 
B)  They are useful if it is decided to prohibit the substance altogether. 
C)  They are useful where dependable metering devices are not available or prohibitively costly to install. 
D)  All of the above are true.

Question 7

What are the implications of the law of conservation of matter and energy for recycling and waste disposal?

Accepted Answer

The physical law of conservation of matt

Question 8

Some of the newer pollutants that have appeared

Accepted Answer

A)  are far more visible to the eye than older pollution. 
B)  cause damage that is easily reversible. 
C)  pose no significant long-term hazards. 
D)  are far more dangerous than older forms of pollution. 
A)  are far more visible to the eye than older pollution. 
B)  cause damage that is easily reversible. 
C)  pose no significant long-term hazards. 
D)  are far more dangerous than older forms of pollution.

Question 9

Economists use a resource's price as an indicator of its relative scarcity.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Basic supply and demand analysis can be used to explain how externalities lead to environmental problems.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the role of individuals and governments in committing environmental damage.

Accepted Answer

Private individuals and government are m

Question 13

A tax on polluting emissions will

Accepted Answer

A)  provide incentives for firms to reduce the volume of polluting materials. 
B)  raise revenue sufficient to eliminate the deficit. 
C)  necessarily lower the price of the products. 
D)  require no agency to administer the tax. 
A)  provide incentives for firms to reduce the volume of polluting materials. 
B)  raise revenue sufficient to eliminate the deficit. 
C)  necessarily lower the price of the products. 
D)  require no agency to administer the tax.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Which of the following could be called a virtue of raising prices of depletable resources?

Accepted Answer

A)  It would discourage consumption and waste. 
B)  It would stimulate more efficient use of resources. 
C)  It would encourage innovation and discovery of alternatives. 
D)  All of the above are true. 
A)  It would discourage consumption and waste. 
B)  It would stimulate more efficient use of resources. 
C)  It would encourage innovation and discovery of alternatives. 
D)  All of the above are true.

Question 16

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 17

Which of the following would not lead to more conservation?

Accepted Answer

A)  higher prices for a resource 
B)  increased interest rates on bonds 
C)  public awareness of increasing scarcity 
D)  higher taxes on goods produced using the resource 
A)  higher prices for a resource 
B)  increased interest rates on bonds 
C)  public awareness of increasing scarcity 
D)  higher taxes on goods produced using the resource

Exam 17: Externalities, the Environment, and Natural Resources

The environmental problems of the former Soviet Union

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?

Unregulated markets will tend to

Detrimental externalities like pollution are a shortcoming of the market mechanism.Do they occur in free market economies alone? Explain with examples.

By providing free garbage removal, a community

Pollution taxes are more efficient in cleaning up the environment than direct controls.What role is there for direct controls?

What are the implications of the law of conservation of matter and energy for recycling and waste disposal?

Some of the newer pollutants that have appeared

Economists use a resource's price as an indicator of its relative scarcity.

Regulations that strictly limit pollution

Basic supply and demand analysis can be used to explain how externalities lead to environmental problems.

Discuss the role of individuals and governments in committing environmental damage.

A tax on polluting emissions will

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

Which of the following could be called a virtue of raising prices of depletable resources?

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

Which of the following would not lead to more conservation?

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 I: The Price System

The Shortcomings of Free Markets

The Market's Prime Achievement: Innovation and Growth

Taxation and Resource Allocation

Pricing the Factors of Production

Labor and Entrepreneurship: The Human Inputs

Poverty, Inequality, and Discrimination

An Introduction to Macroeconomics

The Goals of Macroeconomic Policy

Economic Growth: Theory and Policy

Aggregate Demand and the Powerful Consumer

Demand-Side Equilibrium: Unemployment or Inflation?

Bringing in the Supply Side: Unemployment and Inflation?

Managing Aggregate Demand: Fiscal Policy

Money and the Banking System

Monetary Policy: Conventional and Unconventional

The Financial Crisis and the Great Recession

The Debate over Monetary and Fiscal Policy

Budget Deficits in the Short and Long Run

The Trade-Off between Inflation and Unemployment

International Trade and Comparative Advantage

The International Monetary System: Order or Disorder?

Exchange Rates and the Macroeconomy

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