Question 1

The invention of new mining methods will affect price through the supply side.

Accepted Answer

A) True 
 B)False

Question 2

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 3

If the price of a depleting resource does not rise as anticipated, it may be because

Accepted Answer

A) the government prohibited the methods to extract the resource. 
B) new methods of mining or refining were developed. 
C) a price floor was passed by law. 
D) firms that distribute the resource cartelized. 
A) the government prohibited the methods to extract the resource. 
B) new methods of mining or refining were developed. 
C) a price floor was passed by law. 
D) firms that distribute the resource cartelized.

Question 4

Direct controls work if

Accepted Answer

A) there is vigilance and enthusiasm in enforcement by the regulatory agency. 
B) the court system prosecutes cases no matter how long it takes. 
C) there are affordable penalties imposed by the legal system. 
D) each polluter pays the same charge for pollution reduction. 
A) there is vigilance and enthusiasm in enforcement by the regulatory agency. 
B) the court system prosecutes cases no matter how long it takes. 
C) there are affordable penalties imposed by the legal system. 
D) each polluter pays the same charge for pollution reduction.

Question 5

The use of pollution charges to reduce pollution confronts the problem of

Accepted Answer

A) free riders who avoid revealing benefits from abatement. 
B) determining specific individual damages and appropriate charges associated with pollutants. 
C) necessarily lowering the price of the products. 
D) requiring no agency to administer the tax. 
A) free riders who avoid revealing benefits from abatement. 
B) determining specific individual damages and appropriate charges associated with pollutants. 
C) necessarily lowering the price of the products. 
D) requiring no agency to administer the tax.

Question 6

Pollution taxes are intended to

Accepted Answer

A) reduce the budget deficit. 
B) incentivize firms to cut their pollution. 
C) reduce welfare of polluting firms. 
D) raise deadweight loss. 
A) reduce the budget deficit. 
B) incentivize firms to cut their pollution. 
C) reduce welfare of polluting firms. 
D) raise deadweight loss.

Question 7

Interest in environmental problems has intensified, perhaps because

Accepted Answer

A) for the first time in history in the 1970s, people began to die from pollution-related diseases. 
B) rising incomes have caused people to be more concerned with the quality of their lives. 
C) the centrally planned economies are polluted. 
D) decentralized economies are less polluted. 
A) for the first time in history in the 1970s, people began to die from pollution-related diseases. 
B) rising incomes have caused people to be more concerned with the quality of their lives. 
C) the centrally planned economies are polluted. 
D) decentralized economies are less polluted.

Question 8

Following the sharp increases in oil prices in the United States caused by the OPEC oil embargo of 1973-1974, U.S.automakers started building smaller, more fuel-efficient cars.This development caused the

Accepted Answer

A) demand curve for oil to shift out. 
B) demand curve for oil to shift in. 
C) supply curve of oil to shift out. 
D) supply curve of oil to shift in. 
A) demand curve for oil to shift out. 
B) demand curve for oil to shift in. 
C) supply curve of oil to shift out. 
D) supply curve of oil to shift in.

Question 9

If a firm that emits a form of pollution is also a monopolist, is the firm more likely to be allocatively efficient when compared to a nonmonopoly polluter? Explain.

Accepted Answer

Yes.A monopolist maximizes profit by red

Question 10

Why is it misleading to argue that emissions permits are a "license to pollute"?

Accepted Answer

Critics of emissions trading fail to und

Question 11

Forecasts of an inevitable exhaustion of essential natural resources are "simply beside the point" because higher prices (i) reduce quantity demanded; (ii) stimulate supply; (iii) stimulate alternative technology.

Accepted Answer

A) i only. 
B) ii only. 
C) iii only. 
D) i, ii, and iii. 
A) i only. 
B) ii only. 
C) iii only. 
D) i, ii, and iii.

Question 12

Requiring all firms to reduce emissions by the same percentage is

Accepted Answer

A) impossible. 
B) inefficient. 
C) inequitable. 
D) unenforceable under the law. 
A) impossible. 
B) inefficient. 
C) inequitable. 
D) unenforceable under the law.

Question 13

The production of smoke as a pollutant is a failure of the market system.

Accepted Answer

A) True 
 B)False

Question 14

Many states charge a 10-cent deposit on every can of soda sold.A purchaser pays an extra 10 cents per can and will get his or her money back by returning the empty can to a store.This policy encourages recycling by

Accepted Answer

A) lowering the willingness to pay for recycling materials. 
B) shifting in the demand curve for canned soda. 
C) raising the opportunity cost of discarding empty cans. 
D) taxing the production of canned soda. 
A) lowering the willingness to pay for recycling materials. 
B) shifting in the demand curve for canned soda. 
C) raising the opportunity cost of discarding empty cans. 
D) taxing the production of canned soda.

Question 15

If not recycled, an input used in production ultimately winds up as a waste product.

Accepted Answer

A) True 
 B)False

Question 16

Many of the new pollutants to which the world has been subjected are

Accepted Answer

A) more visible to the naked eye. 
B) less malodorous and less visible. 
C) less dangerous due to new environmental regulations. 
D) pose less health risks. 
A) more visible to the naked eye. 
B) less malodorous and less visible. 
C) less dangerous due to new environmental regulations. 
D) pose less health risks.

Question 17

What is new about environmental problems today is

Accepted Answer

A) that for the first time in history, we have environmental problems. 
B) the increased rate at which air and water pollution is occurring in the United States. 
C) the amount of attention the community now gives them. 
D) that environmental problems with pollution and garbage disposal have almost completely disappeared. 
A) that for the first time in history, we have environmental problems. 
B) the increased rate at which air and water pollution is occurring in the United States. 
C) the amount of attention the community now gives them. 
D) that environmental problems with pollution and garbage disposal have almost completely disappeared.

Question 18

Some politicians rally against using the market to reduce pollution because

Accepted Answer

A) pollution charges and tradable permits allow firms to pollute as long as they can pay for it. 
B) polluting firms do not care about the environment, so something must be done. 
C) government-run industries have been better at controlling their pollution costs when compared to privately run firms 
D) pollution charges and tradable permits do not penalize polluting firms. 
A) pollution charges and tradable permits allow firms to pollute as long as they can pay for it. 
B) polluting firms do not care about the environment, so something must be done. 
C) government-run industries have been better at controlling their pollution costs when compared to privately run firms 
D) pollution charges and tradable permits do not penalize polluting firms.

Question 19

The major problem with direct controls as an environmental protection measure has been

Accepted Answer

A) insufficient enforcement. 
B) special interest legislation. 
C) illegal dumping. 
D) legislation that lack substantial penalties. 
A) insufficient enforcement. 
B) special interest legislation. 
C) illegal dumping. 
D) legislation that lack substantial penalties.

Question 20

Centrally planned economies are able to cope with environmental pollution issues much better than capitalist countries.

Accepted Answer

A) True 
 B)False

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

The invention of new mining methods will affect price through the supply side.

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

If the price of a depleting resource does not rise as anticipated, it may be because

Direct controls work if

The use of pollution charges to reduce pollution confronts the problem of

Pollution taxes are intended to

Interest in environmental problems has intensified, perhaps because

Following the sharp increases in oil prices in the United States caused by the OPEC oil embargo of 1973-1974, U.S.automakers started building smaller, more fuel-efficient cars.This development caused the

If a firm that emits a form of pollution is also a monopolist, is the firm more likely to be allocatively efficient when compared to a nonmonopoly polluter? Explain.

Why is it misleading to argue that emissions permits are a "license to pollute"?

Forecasts of an inevitable exhaustion of essential natural resources are "simply beside the point" because higher prices (i) reduce quantity demanded; (ii) stimulate supply; (iii) stimulate alternative technology.

Requiring all firms to reduce emissions by the same percentage is

The production of smoke as a pollutant is a failure of the market system.

Many states charge a 10-cent deposit on every can of soda sold.A purchaser pays an extra 10 cents per can and will get his or her money back by returning the empty can to a store.This policy encourages recycling by

If not recycled, an input used in production ultimately winds up as a waste product.

Many of the new pollutants to which the world has been subjected are

What is new about environmental problems today is

Some politicians rally against using the market to reduce pollution because

The major problem with direct controls as an environmental protection measure has been

Centrally planned economies are able to cope with environmental pollution issues much better than capitalist countries.

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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