Question 1

Explain some important situations where direct controls have a clear advantage over taxes.

Accepted Answer

The answer of Explain some important situations where direct controls...

Question 2

An unexpected discovery of a new mineral deposit will cause the

Accepted Answer

A) demand curve to shift outward. 
B) demand curve to shift inward. 
C) supply curve to shift outward. 
D) supply curve to shift inward. 
A) demand curve to shift outward. 
B) demand curve to shift inward. 
C) supply curve to shift outward. 
D) supply curve to shift inward.

Question 3

What is true of depletable resources is that

Accepted Answer

A) increasing scarcity leads to their total disappearance. 
B) they are depleted by gradually using up the supply of homogeneous resources, every unit of which is equally available. 
C) generally the most accessible and cheapest sources are used up so that new supplies become more costly. 
D) their prices must rise at the average rate of inflation. 
A) increasing scarcity leads to their total disappearance. 
B) they are depleted by gradually using up the supply of homogeneous resources, every unit of which is equally available. 
C) generally the most accessible and cheapest sources are used up so that new supplies become more costly. 
D) their prices must rise at the average rate of inflation.

Question 4

Explain why environmental damage would be classified as an externality.

Accepted Answer

An externality is an incidental conseque

Question 5

Serious environmental problems are

Accepted Answer

A) unique to industrial economies. 
B) unique to Western economies. 
C) unique to civilized economies (i.e., those in which people live mainly in cities). 
D) experienced by centrally planned and market-based economic systems. 
A) unique to industrial economies. 
B) unique to Western economies. 
C) unique to civilized economies (i.e., those in which people live mainly in cities). 
D) experienced by centrally planned and market-based economic systems.

Question 6

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

Accepted Answer

A) impose the same costs on all firms. 
B) minimize the cost of pollution reduction. 
C) penalize firms that have already incurred some costs to reduce pollution. 
D) are the fairest way to distribute the burden 
A) impose the same costs on all firms. 
B) minimize the cost of pollution reduction. 
C) penalize firms that have already incurred some costs to reduce pollution. 
D) are the fairest way to distribute the burden

Question 7

Supply and demand analysis

Accepted Answer

A) can be used to understand solutions to pollution, but not causes. 
B) can be used to analyze how externalities lead to environmental problems. 
C) cannot be used to analyze pollution, which is a physical and chemical problem. 
D) cannot be used to solve the pollution problem, but can be used to analyze it. 
A) can be used to understand solutions to pollution, but not causes. 
B) can be used to analyze how externalities lead to environmental problems. 
C) cannot be used to analyze pollution, which is a physical and chemical problem. 
D) cannot be used to solve the pollution problem, but can be used to analyze it.

Question 8

A pollution tax penalizes inefficient firms.

Accepted Answer

A) True 
 B)False

Question 9

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 10

If suppliers of garbage collection services charged the full costs of providing the service, the supply curve would

Accepted Answer

A) change to a positive slope. 
B) change to a negative slope. 
C) shift to the left. 
D) shift to the right. 
A) change to a positive slope. 
B) change to a negative slope. 
C) shift to the left. 
D) shift to the right.

Question 11

Rising prices for a natural resource stimulate

Accepted Answer

A) the development of complements for the resource. 
B) the development of substitutes for the resource. 
C) the development of externalities from the resource. 
D) the tendency to consume before the resource expires. 
A) the development of complements for the resource. 
B) the development of substitutes for the resource. 
C) the development of externalities from the resource. 
D) the tendency to consume before the resource expires.

Question 12

Voluntary programs are dependable ways to protect the environment.

Accepted Answer

A) True 
 B)False

Question 13

Recycling rates for aluminum, paper, and glass have been increasing in the United States.

Accepted Answer

A) True 
 B)False

Question 14

The deregulation of oil pricing will

Accepted Answer

A) increase our dependence on foreign oil. 
B) make the United States energy independent by the year 2000. 
C) decrease domestic production. 
D) decrease the extent of the nation's dependence on foreign oil. 
A) increase our dependence on foreign oil. 
B) make the United States energy independent by the year 2000. 
C) decrease domestic production. 
D) decrease the extent of the nation's dependence on foreign oil.

Question 15

As a competitive economy uses its stocks of a depletable resource,

Accepted Answer

A) the resource price will fall by ever greater amounts each year. 
B) the resource price will rise by ever greater amounts each year. 
C) the use of the resource will increase at an increasing rate. 
D) resource use will drop to zero. 
A) the resource price will fall by ever greater amounts each year. 
B) the resource price will rise by ever greater amounts each year. 
C) the use of the resource will increase at an increasing rate. 
D) resource use will drop to zero.

Question 16

Under perfect competition, the price of a depletable resource whose cost of extraction is not changing must rise at

Accepted Answer

A) the same rate as the increase in GDP. 
B) the same rate as the increase in consumer prices. 
C) the same rate as the rate of interest. 
D) a rate higher than the increase in the rate of interest. 
A) the same rate as the increase in GDP. 
B) the same rate as the increase in consumer prices. 
C) the same rate as the rate of interest. 
D) a rate higher than the increase in the rate of interest.

Question 17

Since World War II,

Accepted Answer

A) air pollution has worsened in most U.S.cities. 
B) many new pollutants have been introduced or identified. 
C) the federal government has reduced its reliance on economic incentives as a means of reducing pollution. 
D) the United States has polluted more per capita than China and India. 
A) air pollution has worsened in most U.S.cities. 
B) many new pollutants have been introduced or identified. 
C) the federal government has reduced its reliance on economic incentives as a means of reducing pollution. 
D) the United States has polluted more per capita than China and India.

Question 18

Recycling in the United States in recent years

Accepted Answer

A) has decreased in spite of increased rates for common recycling materials. 
B) has remained unchanged, and increased rates for recycling may help. 
C) has increased with increased rates for recycling materials. 
D) has increased with no help from increased fees for recycling materials. 
A) has decreased in spite of increased rates for common recycling materials. 
B) has remained unchanged, and increased rates for recycling may help. 
C) has increased with increased rates for recycling materials. 
D) has increased with no help from increased fees for recycling materials.

Question 19

Pollution is an externality, this means

Accepted Answer

A) the free market allows households and firms to consume a minimal amount of clean air. 
B) it is in the public interest to reduce pollution levels to zero. 
C) individuals and firms consume "free" air wastefully. 
D) the pricing system sets clean air at a high price. 
A) the free market allows households and firms to consume a minimal amount of clean air. 
B) it is in the public interest to reduce pollution levels to zero. 
C) individuals and firms consume "free" air wastefully. 
D) the pricing system sets clean air at a high price.

Question 20

Emissions permits allow polluters to pay for the right to pollute a specified amount.

Accepted Answer

A) True 
 B)False

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

Explain some important situations where direct controls have a clear advantage over taxes.

An unexpected discovery of a new mineral deposit will cause the

What is true of depletable resources is that

Explain why environmental damage would be classified as an externality.

Serious environmental problems are

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

Supply and demand analysis

A pollution tax penalizes inefficient firms.

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?

If suppliers of garbage collection services charged the full costs of providing the service, the supply curve would

Rising prices for a natural resource stimulate

Voluntary programs are dependable ways to protect the environment.

Recycling rates for aluminum, paper, and glass have been increasing in the United States.

The deregulation of oil pricing will

As a competitive economy uses its stocks of a depletable resource,

Under perfect competition, the price of a depletable resource whose cost of extraction is not changing must rise at

Since World War II,

Recycling in the United States in recent years

Pollution is an externality, this means

Emissions permits allow polluters to pay for the right to pollute a specified amount.

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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