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

Direct controls have traditionally been used heavily to control pollution in the United States.

Environmental problems occur exclusively in capitalist economies.

If one adopts a pure free-market approach to depletable resources, then one can expect the price of resources to

A government currently uses price controls to hold down the price of zinc, an exhaustible resource.If price controls are removed,

The socialist countries of Eastern Europe have

If a resource is in fact becoming scarcer, then one should expect

Based on economic theory, which statement is incorrect regarding the causes of pollution?

Emissions permits might be called an allowance.

Increasing GDP generally causes increases in problems of waste disposal.

The British economist A.C.Pigou did not do which of the following?

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

Economists predicted that the price of a depletable natural resource would rise by about 15 percent.Actually the price fell 10 percent.What most likely happened?

Taxes on polluting emissions are

Empirical evidence indicates that imposing taxes on polluting emissions by firms

Economists believe that externalities can be remedied by market methods.

The Army Corps of Engineers has been accused of acting on the basis of a so-called "edifice complex."

Unexpected discoveries of mineral reserves will ordinarily cause the price of these minerals to increase.

Externalities can create a threat to environmental quality.

Global warming of the past century, and especially in the past decade, is at least partly a consequence of human activities that have increased ____ in the atmosphere.

In North Carolina, a car must pass an emissions test before it can be registered.The emissions test costs $20 per car.This system is an example of