Exam 9: Pollution and the Environment

The following table shows the costs to society of allowing certain levels of air pollution as well as the costs of pollution control.What is the optimal level of air pollution in terms of both the costs of pollution and the costs of control?

A market-based approach for reducing pollution to a specific overall authorized level can be achieved by using

When market prices fall short of the true social costs of an activity

Pollution control policies such as effluent fees

A sensible pollution control goal for society is to

An appropriate way for government to intervene when external diseconomies exist in an industry is to

Crystal Clear Glass Company uses a refinement method that creates air pollution,causing the recreational industry in the area to suffer and forcing a number of citizens to relocate.This behavior is an example of a(n)

When individuals do not pay the true social costs of their actions

The issuance of enforceable rules for waste disposal represents a pollution control policy based on

A firm dumping pollutants into a stream,thereby rendering the water unfit for use by those downstream,would be an example of a(n)

An external diseconomy results in a socially nonoptimal use of a resource because

Requiring deposits on soft drink containers is an example of using the price system to eliminate an external diseconomy because

The pollution of streams and the atmosphere indicates

The price system functions most effectively when

When the United States passed the Marine Mammals Act in the early 1990s because of pressure from environmental groups,it

The 1997 Kyoto environmental summit embraced which of the following policies to reduce worldwide pollution?

Which of the following policies would be LEAST desirable in helping to control pollution?

When the social costs of using a resource exceed the private costs

From the perspective of economic analysis,society should

The EPA has estimated that it would cost $60 billion to remove 85 to 90 percent of water pollutants from industrial and municipal sources,but a zero discharge of pollutants would cost about $320 billion.This suggests that