Exam 16: The Economics of the Environment, and Natural Resources

The price of an exhaustible resource sold in a perfectly competitive market in which technology and consumer preferences do not change over time will tend to

Among the factors that might lead to a divergence from the path of prices for a depletable resource predicted by the economic models are: (i) unexpected discoveries of new reserves; (ii) new technologies that reduce extraction costs.

Most economists agree that exclusive reliance on direct controls

Steps taken to clean the environment may lead to

How does the price system cope with depletable resources?

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

Centrally planned economies have historically been more damaging to the environment than capitalist ones.

Which of the following statements is false?

During the Trump administration, environmental fines and prosecutions

The price of a depletable natural resource last year rose more than expected.The most likely explanation is that

The use of tax penalties to control pollution represents a

The price elasticity of demand for an exhaustible natural resource tends to

Identify the economist who first addressed the environmental problem in terms of externalities.

One advantage about an emissions permit system is that

Which is not an example of pollution?

When society relies on voluntarism to resolve environmental problems it

Which of the following could explain a fall over time in the price of the depletable resource bauxite?

Americans are creating an enormous amount of solid waste daily-over 4 pounds per person per day.How is the United States coping with this extraordinary problem?

A market with an externality can

The external costs of alcohol consumption are related to, among other things, death and injury related to auto accidents caused by drunk drivers.These costs have been estimated to be about 47 cents per ounce of alcohol consumed.Taxes on alcohol amount to 23 cents per ounce.This suggests that alcohol consumption is (i) greater than the efficient or optimal amount; (ii) should be reduced to zero to eliminate the externality.