Question 1

Property rights can be defined and enforced

Accepted Answer

A) only by the government 
B) only by ethical norms 
C) by the government and by ethical norms 
D) only through constant renegotiation 
E) by government, by informal social actions, and by ethical norms 
A) only by the government 
B) only by ethical norms 
C) by the government and by ethical norms 
D) only through constant renegotiation 
E) by government, by informal social actions, and by ethical norms

Question 2

If tuna in the sea are open­access resources, they will be used until themarginal value of additional use equals

Accepted Answer

A) the marginal product of the resource 
B) the marginal revenue of the resource 
C) infinity 
D) negative infinity 
E) zero 
A) the marginal product of the resource 
B) the marginal revenue of the resource 
C) infinity 
D) negative infinity 
E) zero

Question 3

Which of the following would not be considered a negative externality?

Accepted Answer

A) loud rap music at 2 a.m.in the apartment next door to you 
B) traffic congestion 
C) an Alaskan oil spill 
D) measles vaccinations 
E) air pollution 
A) loud rap music at 2 a.m.in the apartment next door to you 
B) traffic congestion 
C) an Alaskan oil spill 
D) measles vaccinations 
E) air pollution

Question 4

If periodic use of a resource can be continued indefinitely, that resource issaid to be

Accepted Answer

A) removable 
B) renewable 
C) cyclical 
D) recyclable 
E) part of a common pool 
A) removable 
B) renewable 
C) cyclical 
D) recyclable 
E) part of a common pool

Question 5

An externality is

Accepted Answer

A) a cost of a transaction that is borne by a third party 
B) a benefit of a transaction that is enjoyed by a third party 
C) a cost or benefit that arises when market price changes 
D) any cost or benefit of a transaction that is not accounted for in the market price 
E) the external revenue generated by a firm 
A) a cost of a transaction that is borne by a third party 
B) a benefit of a transaction that is enjoyed by a third party 
C) a cost or benefit that arises when market price changes 
D) any cost or benefit of a transaction that is not accounted for in the market price 
E) the external revenue generated by a firm

Question 6

Oil is an example of a renewable resource.

Accepted Answer

A) True 
 B)False

Question 7

Open­access resources tend to be

Accepted Answer

A) conserved 
B) taxed 
C) overused 
D) efficiently used 
E) used in an environmentally sound manner 
A) conserved 
B) taxed 
C) overused 
D) efficiently used 
E) used in an environmentally sound manner

Question 8

A person can cause a negative externality by

Accepted Answer

A) becoming immunized 
B) talking loudly in a restaurant 
C) landscaping her lawn 
D) paying taxes 
E) attending school 
A) becoming immunized 
B) talking loudly in a restaurant 
C) landscaping her lawn 
D) paying taxes 
E) attending school

Question 9

When an activity results in the creation of external benefits, markets willproduce more than the socially optimal level of that activity.

Accepted Answer

A) True 
 B)False

Question 10

Some pollution occurs because property rights to some resources are welldefined.

Accepted Answer

A) True 
 B)False

Question 11

The most likely reason why Los Angeles has so much smog is that residents

Accepted Answer

A) do not have strong, enforceable property rights to rapid transit 
B) do not have strong, enforceable property rights to clean air 
C) prefer dirty air to the inconvenience of rapid transit 
D) prefer dirty air to the inconvenience of carpools 
E) prefer dirty air to the inconvenience of eliminating smog 
A) do not have strong, enforceable property rights to rapid transit 
B) do not have strong, enforceable property rights to clean air 
C) prefer dirty air to the inconvenience of rapid transit 
D) prefer dirty air to the inconvenience of carpools 
E) prefer dirty air to the inconvenience of eliminating smog

Property rights can be defined and enforced

If tuna in the sea are openaccess resources, they will be used until themarginal value of additional use equals

Which of the following would not be considered a negative externality?

If periodic use of a resource can be continued indefinitely, that resource issaid to be

An externality is

Oil is an example of a renewable resource.

Openaccess resources tend to be

A person can cause a negative externality by

When an activity results in the creation of external benefits, markets willproduce more than the socially optimal level of that activity.

Some pollution occurs because property rights to some resources are welldefined.

The most likely reason why Los Angeles has so much smog is that residents

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand Supply and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital Interest Entrepreneurship and Corporate Finance

Transaction Costs Imperfect Information and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

Exam 17: Externalities and the Environment

Property rights can be defined and enforced

If tuna in the sea are open­access resources, they will be used until themarginal value of additional use equals

Which of the following would not be considered a negative externality?

If periodic use of a resource can be continued indefinitely, that resource issaid to be

An externality is

Oil is an example of a renewable resource.

Open­access resources tend to be

A person can cause a negative externality by

When an activity results in the creation of external benefits, markets willproduce more than the socially optimal level of that activity.

Some pollution occurs because property rights to some resources are welldefined.

The most likely reason why Los Angeles has so much smog is that residents

The Art and Science of Economic Analysis

Economic Tools and Economics Systems

Economic Decision Makers

Demand Supply and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital Interest Entrepreneurship and Corporate Finance

Transaction Costs Imperfect Information and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Income Distribution and Poverty

International Trade

International Finance

Economic Development

Filters

If tuna in the sea are openaccess resources, they will be used until themarginal value of additional use equals

Openaccess resources tend to be