Exam 16: Externalities, Externaliteis, the Environment, and Natural Resources

Explain what a "cap and trade" program is and how it works. Does the United States have a cap and trade program? If so, is it successful?

Pollution is an externality, this means

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

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

Although pollution is caused by a failure of the market, many economists believe that the best way to protect the environment is to utilize the price mechanism.

Describe how a pollution-control authority might use an emissions permits system to reduce pollution.

The position of the supply curve in the market for garbage removal

Which of the following is an advantage to the pollution-rights approach 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.

Voluntarism in recycling garbage

Taxes on emissions have

Taxes on polluting emissions are

Many economists argue that the most efficient way to control pollution is to

Pollution is an example of a negative externality.

Taxing firms that emit pollutants is one way to reduce pollution.

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

Direct controls often require long legal proceedings before they can be effective.

In a free market for depletable natural resources, any shortage where there is an excess of quantity demanded over quantity supplied must be

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?

Skeptics have been historically incorrect about