Question 1

The following question are based on the following diagram:
  
-It costs society more to allow pollution to take place than it does to reduce pollution in the range

Accepted Answer

A)  0A. 
B)  AB. 
C)  AC. 
D)  BC. 
E)  CD. 
A)  0A. 
B)  AB. 
C)  AC. 
D)  BC. 
E)  CD.

Question 2

If the government charges Crystal Clear Glass Company according to the estimated pounds of waste it discharges into the atmosphere,this is an example of

Accepted Answer

A)  direct regulation. 
B)  a tax credit. 
C)  an effluent fee. 
D)  private cost regulation. 
E)  a transferable emissions permit. 
A)  direct regulation. 
B)  a tax credit. 
C)  an effluent fee. 
D)  private cost regulation. 
E)  a transferable emissions permit.

Question 3

An effluent fee induces a polluter to

Accepted Answer

A)  increase his or her profits. 
B)  reduce waste discharge. 
C)  eliminate pollution entirely. 
D)  overspend on pollution reduction to the point where profits disappear. 
E)  stop production. 
A)  increase his or her profits. 
B)  reduce waste discharge. 
C)  eliminate pollution entirely. 
D)  overspend on pollution reduction to the point where profits disappear. 
E)  stop production.

Question 4

A mandatory neighborhood recycling program is an example of dealing with an environmental pollution problem by using

Accepted Answer

A)  the price system. 
B)  tax incentives. 
C)  effluent fees. 
D)  direct regulation. 
E)  dumping duties. 
A)  the price system. 
B)  tax incentives. 
C)  effluent fees. 
D)  direct regulation. 
E)  dumping duties.

Question 5

The federal agency established in 1970 to establish air and water quality standards and devise rules to achieve these standards is the

Accepted Answer

A)  Sierra Club. 
B)  Council on Environmental Quality. 
C)  Council of Economic Advisers. 
D)  DDT. 
E)  EPA. 
A)  Sierra Club. 
B)  Council on Environmental Quality. 
C)  Council of Economic Advisers. 
D)  DDT. 
E)  EPA.

Question 6

-The social cost of pollution equals 4P,where P is the level of pollution,and the cost of pollution control equals 10 - 1P.What is the optimal level of pollution?

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  4 
E)  10 
A)  0 
B)  1 
C)  2 
D)  4 
E)  10

Question 7

A significant cost of economic growth is

Accepted Answer

A)  increased consumer satisfaction. 
B)  higher levels of per capita output. 
C)  increased leisure time. 
D)  environmental pollution. 
E)  economies of scale. 
A)  increased consumer satisfaction. 
B)  higher levels of per capita output. 
C)  increased leisure time. 
D)  environmental pollution. 
E)  economies of scale.

Question 8

One way the government can reduce the financial burden to firms that install pollution control equipment is to use

Accepted Answer

A)  tax credits. 
B)  effluent fees. 
C)  direct regulation. 
D)  price controls. 
E)  quotas. 
A)  tax credits. 
B)  effluent fees. 
C)  direct regulation. 
D)  price controls. 
E)  quotas.

Question 9

The following question are based on the following diagram:
  
-Point C represents the

Accepted Answer

A)  highest cost of pollution. 
B)  average cost of pollution. 
C)  optimal level of pollution 
D)  absence of pollution. 
E)  point where the costs of pollution equal the costs of pollution control. 
A)  highest cost of pollution. 
B)  average cost of pollution. 
C)  optimal level of pollution 
D)  absence of pollution. 
E)  point where the costs of pollution equal the costs of pollution control.

Question 10

The following question are based on the following diagram:
  
-Curve 3 represents the

Accepted Answer

A)  cost of pollution to society. 
B)  cost of pollution control to society. 
C)  difference between the cost of pollution and the cost of pollution control. 
D)  sum of the costs of pollution and of pollution control. 
E)  cost of pollution divided by the cost of pollution control. 
A)  cost of pollution to society. 
B)  cost of pollution control to society. 
C)  difference between the cost of pollution and the cost of pollution control. 
D)  sum of the costs of pollution and of pollution control. 
E)  cost of pollution divided by the cost of pollution control.

Question 11

The following question are based on the following diagram:
  
-Curve 1 represents the

Accepted Answer

A)  cost of pollution to society. 
B)  cost of pollution control to society. 
C)  difference between the cost of pollution and the cost of pollution control. 
D)  sum of the costs of pollution and of pollution control. 
E)  cost of pollution divided by the cost of pollution control. 
A)  cost of pollution to society. 
B)  cost of pollution control to society. 
C)  difference between the cost of pollution and the cost of pollution control. 
D)  sum of the costs of pollution and of pollution control. 
E)  cost of pollution divided by the cost of pollution control.

Question 12

Pollution-generating companies tend to overproduce because

Accepted Answer

A)  consumers want something as compensation for the pollution. 
B)  the supply curve of the firm incorporates only the private costs of production. 
C)  the private costs exceed the social costs. 
D)  consumers pay for waste disposal in the price of the product. 
E)  they have extra profits to spend on advertising. 
A)  consumers want something as compensation for the pollution. 
B)  the supply curve of the firm incorporates only the private costs of production. 
C)  the private costs exceed the social costs. 
D)  consumers pay for waste disposal in the price of the product. 
E)  they have extra profits to spend on advertising.

Question 13

-The table above shows the cost to society of allowing a given pollution level (in terms of polluted stream miles)and the cost of pollution control (in millions of dollars).How many polluted stream miles should be tolerated to minimize the total costs of pollution?

Accepted Answer

A)  0 
B)  1,000 
C)  2,000 
D)  3,000 
E)  4,000 
A)  0 
B)  1,000 
C)  2,000 
D)  3,000 
E)  4,000

Question 14

A basic economic problem encountered when evaluating some of the more recent environmental initiatives,such as proposals designed to halt global warming or reduce acid rain,is that

Accepted Answer

A)  economic growth will be increased in the developing countries at the expense of growth in developed countries. 
B)  since environmental changes are not affected by human production or consumption, these policies have no impact on the problem. 
C)  the cost of these environmental initiatives may exceed the estimated value of the benefits. 
D)  since all such proposals are demonstrated to be effective, there is no means to decide which approach is best. 
E)  most efforts to control pollution result in the creation of a new form of pollution; for example, reducing atmospheric pollution increases water pollution. 
A)  economic growth will be increased in the developing countries at the expense of growth in developed countries. 
B)  since environmental changes are not affected by human production or consumption, these policies have no impact on the problem. 
C)  the cost of these environmental initiatives may exceed the estimated value of the benefits. 
D)  since all such proposals are demonstrated to be effective, there is no means to decide which approach is best. 
E)  most efforts to control pollution result in the creation of a new form of pollution; for example, reducing atmospheric pollution increases water pollution.

Question 15

At present,the major means by which government intervenes to remedy the country's pollution problem is

Accepted Answer

A)  effluent fees. 
B)  direct regulation. 
C)  pollution taxes. 
D)  tax credits for pollution control equipment. 
E)  issuance of certificates or licenses to pollute. 
A)  effluent fees. 
B)  direct regulation. 
C)  pollution taxes. 
D)  tax credits for pollution control equipment. 
E)  issuance of certificates or licenses to pollute.

Question 16

As a result of this government action,we would expect that the price of glass produced by Crystal would

Accepted Answer

A)  fall steeply. 
B)  fall slightly. 
C)  stay about the same. 
D)  rise. 
E)  do any of the above, since government action may either raise or lower costs. 
A)  fall steeply. 
B)  fall slightly. 
C)  stay about the same. 
D)  rise. 
E)  do any of the above, since government action may either raise or lower costs.

Exam 9: Pollution and the Environment

The following question are based on the following diagram: -It costs society more to allow pollution to take place than it does to reduce pollution in the range

If the government charges Crystal Clear Glass Company according to the estimated pounds of waste it discharges into the atmosphere,this is an example of

An effluent fee induces a polluter to

A mandatory neighborhood recycling program is an example of dealing with an environmental pollution problem by using

The federal agency established in 1970 to establish air and water quality standards and devise rules to achieve these standards is the

-The social cost of pollution equals 4P,where P is the level of pollution,and the cost of pollution control equals 10 - 1P.What is the optimal level of pollution?

A significant cost of economic growth is

One way the government can reduce the financial burden to firms that install pollution control equipment is to use

The following question are based on the following diagram: -Point C represents the

The following question are based on the following diagram: -Curve 3 represents the

The following question are based on the following diagram: -Curve 1 represents the

Pollution-generating companies tend to overproduce because

-The table above shows the cost to society of allowing a given pollution level (in terms of polluted stream miles)and the cost of pollution control (in millions of dollars).How many polluted stream miles should be tolerated to minimize the total costs of pollution?

A basic economic problem encountered when evaluating some of the more recent environmental initiatives,such as proposals designed to halt global warming or reduce acid rain,is that

At present,the major means by which government intervenes to remedy the country's pollution problem is

As a result of this government action,we would expect that the price of glass produced by Crystal would

What is Economics

Markets and Prices

The Business Firm: Organization,motivation,and Optimal Input Decisions

Getting Behind the Demand and Supply Curves

Market Demand and Price Elasticity

Economic Efficiency,market Supply,and Perfect Competition

Monopoly and Its Regulation

Monopolistic Competition,oligopoly,and Antitrust Policy

The Supply and Demand for Labor

Interest,rent,and Profit

Poverty,income Inequality,and Discrimination

Economic Growth

Public Goods and the Role of the Government

National Income and Product

Business Fluctuations and Unemployment

The Determination of National Output and the Keynesian Multiplier

Fiscal Policy and National Output

Inflation

Money and the Banking System

The Federal Reserve and Monetary Policy

Supply Shocks and Inflation

Productivity,growth,and Technology Policy

Surpluses,deficits,public Debt,and the Federal Budget

Monetary Policy,interest Rates,and Economic Activity

Controversies Over Stabilization Policy

International Trade

Exchange Rates and the Balance of Payments

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