Question 1

When pollution emissions can be measured, taxation will tend to be more effective than any other method of controlling pollution.

Accepted Answer

A) True 
 B)False

Question 2

The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth and 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) cap-and-trade. 
A) voluntary compliance. 
B) direct controls. 
C) taxes. 
D) cap-and-trade.

Question 3

Rising prices help control the process of resource depletion by

Accepted Answer

A) encouraging consumption and waste. 
B) stimulating more efficient use of the depletable resource. 
C) disincentivizing resource-saving innovation. 
D) stimulating resource imports. 
A) encouraging consumption and waste. 
B) stimulating more efficient use of the depletable resource. 
C) disincentivizing resource-saving innovation. 
D) stimulating resource imports.

Question 4

Direct controls

Accepted Answer

A) rely on the criminal justice system for enforcement. 
B) will be successful if a penalty is put in place. 
C) can easily be enforced. 
D) is a comparable method to emissions taxes. 
A) rely on the criminal justice system for enforcement. 
B) will be successful if a penalty is put in place. 
C) can easily be enforced. 
D) is a comparable method to emissions taxes.

Question 5

Direct controls are considered inefficient because all firms are forced to pay the same costs.

Accepted Answer

A) True 
 B)False

Question 6

Concerns about environmental damages arise from

Accepted Answer

A) concerns about rising real gross domestic product in developing countries. 
B) concerns about unemployment and the cost of living. 
C) new research findings made public. 
D) concerns about the quality of life. 
A) concerns about rising real gross domestic product in developing countries. 
B) concerns about unemployment and the cost of living. 
C) new research findings made public. 
D) concerns about the quality of life.

Question 7

Which fact about recycling is incorrect?

Accepted Answer

A) Between 1980 and 2008, recycling in the United States has tripled. 
B) As of 2014, the 27 European Union members recycled more in terms of a percentage of garbage than the United States. 
C) Recycling rates of commonly used materials in the United States and industrial countries have fallen. 
D) Only 9 percent of plastics are recycled. 
A) Between 1980 and 2008, recycling in the United States has tripled. 
B) As of 2014, the 27 European Union members recycled more in terms of a percentage of garbage than the United States. 
C) Recycling rates of commonly used materials in the United States and industrial countries have fallen. 
D) Only 9 percent of plastics are recycled.

Question 8

Price controls on resources generally lead to surpluses.

Accepted Answer

A) True 
 B)False

Question 9

Regulations that strictly limit pollution

Accepted Answer

A) provide firms no incentives to reduce pollution once a standard is met. 
B) provide no incentives for firms to discover loopholes in the regulations. 
C) tend to be an economically efficient way to reduce pollution. 
D) has been a simple way for some firms to reduce pollution to zero. 
A) provide firms no incentives to reduce pollution once a standard is met. 
B) provide no incentives for firms to discover loopholes in the regulations. 
C) tend to be an economically efficient way to reduce pollution. 
D) has been a simple way for some firms to reduce pollution to zero.

Question 10

Individuals, firms, and government agencies deplete clean water and clean air because

Accepted Answer

A) they are excludable resources. 
B) the cost of doing so has no impact on the environment. 
C) they are nondepletable. 
D) there is little to no charge in accessing these resources. 
A) they are excludable resources. 
B) the cost of doing so has no impact on the environment. 
C) they are nondepletable. 
D) there is little to no charge in accessing these resources.

Question 11

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 12

Which of the following is a main political objection against using the market to reduce pollution?

Accepted Answer

A) Pollution charges and cap-and-trade schemes raise prices and lower consumer welfare. 
B) Cap-and-trade redistributes income from less-efficient polluters to more-efficient polluters. 
C) Firms already pay a high corporate tax. 
D) Consumers do not have the same built in tax loopholes as firms. 
A) Pollution charges and cap-and-trade schemes raise prices and lower consumer welfare. 
B) Cap-and-trade redistributes income from less-efficient polluters to more-efficient polluters. 
C) Firms already pay a high corporate tax. 
D) Consumers do not have the same built in tax loopholes as firms.

Question 13

Which of the following is an example of detrimental externality?

Accepted Answer

A) A trailer's entry onto an overcrowded road that delays the movement of other vehicles. 
B) Fall in demand for gasoline in the United States softens the price of gasoline in the global market. 
C) Government investment in energy generation from nonconventional sources. 
D) Society devotes huge quantity of its scarce resources for vital innovative activity. 
A) A trailer's entry onto an overcrowded road that delays the movement of other vehicles. 
B) Fall in demand for gasoline in the United States softens the price of gasoline in the global market. 
C) Government investment in energy generation from nonconventional sources. 
D) Society devotes huge quantity of its scarce resources for vital innovative activity.

Question 14

Which of the following statements is not true?

Accepted Answer

A) Ozone remains a pervasive problem in the United States. 
B) The United States suffers the worst air quality during winter months. 
C) Since the 1980s, there has been a downward trend in ambient concentrations of sulfur dioxide, carbon monoxide, and lead in the United States. 
D) Improperly dumped toxic substances can cause cancer and threaten overall health. 
A) Ozone remains a pervasive problem in the United States. 
B) The United States suffers the worst air quality during winter months. 
C) Since the 1980s, there has been a downward trend in ambient concentrations of sulfur dioxide, carbon monoxide, and lead in the United States. 
D) Improperly dumped toxic substances can cause cancer and threaten overall health.

Question 15

One of the virtues of rising resource prices is they encourage innovation, especially the discovery of other more abundant resources.

Accepted Answer

A) True 
 B)False

Question 16

Voluntarism often has proved to be weak and unreliable.Does it still have a place in controlling activities that damage the environment?

Accepted Answer

Yes, voluntary measures do have their pl

Question 17

Pollution is a relatively new phenomenon.

Accepted Answer

A) True 
 B)False

Question 18

Under EPA regulations, a factory

Accepted Answer

A) must pay for the right to pollute. 
B) can increase air pollution from its grinding process if it decreases air pollution from its smelting process. 
C) cannot under any circumstances build a polluting factory in an area where pollution standards are not being met by existing firms. 
D) can pay off regulators in order to continue operations business as usual. 
A) must pay for the right to pollute. 
B) can increase air pollution from its grinding process if it decreases air pollution from its smelting process. 
C) cannot under any circumstances build a polluting factory in an area where pollution standards are not being met by existing firms. 
D) can pay off regulators in order to continue operations business as usual.

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

When pollution emissions can be measured, taxation will tend to be more effective than any other method of controlling pollution.

Rising prices help control the process of resource depletion by

Direct controls

Direct controls are considered inefficient because all firms are forced to pay the same costs.

Concerns about environmental damages arise from

Which fact about recycling is incorrect?

Price controls on resources generally lead to surpluses.

Regulations that strictly limit pollution

Individuals, firms, and government agencies deplete clean water and clean air because

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

Which of the following is a main political objection against using the market to reduce pollution?

Which of the following is an example of detrimental externality?

Which of the following statements is not true?

One of the virtues of rising resource prices is they encourage innovation, especially the discovery of other more abundant resources.

Voluntarism often has proved to be weak and unreliable.Does it still have a place in controlling activities that damage the environment?

Pollution is a relatively new phenomenon.

Under EPA regulations, a factory

What Is Economics

The Economony: 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

The Financial Markets and the Economy: the Tail That Wags the Dog

The Firm and the Industry Under Perfect Competition

The Case for Free Markets: the Price System

Monopoly

Between Competition and Monopoly

Limiting Market Power: Antitrust and Regulation

The Shortcomings of Free Markets

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

Contemporary Issues in the Useconomy

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