Question 1

Environmental regulation by the government

Accepted Answer

A) leads to ideal outcomes in most cases. 
B) is often based on goals for pollution levels that were determined by market signals. 
C) is most appropriate when the pollution of concern comes from many sources. 
D) is most likely to be economically efficient when the regulation provides substantial benefits for special-interest groups. 
A) leads to ideal outcomes in most cases. 
B) is often based on goals for pollution levels that were determined by market signals. 
C) is most appropriate when the pollution of concern comes from many sources. 
D) is most likely to be economically efficient when the regulation provides substantial benefits for special-interest groups. C

Question 2

Economic thinking indicates that efficient adaptation strategies to reduce harms from future global warming will

Accepted Answer

A) focus on reducing overall carbon emissions. 
B) emphasize changes like those imposed on prosperous nations by the Kyoto Treaty. 
C) focus on reducing the effects of serious problems that we know to exist. 
D) ensure that every precaution will be taken to reduce any possible risks for the future. 
A) focus on reducing overall carbon emissions. 
B) emphasize changes like those imposed on prosperous nations by the Kyoto Treaty. 
C) focus on reducing the effects of serious problems that we know to exist. 
D) ensure that every precaution will be taken to reduce any possible risks for the future. C

Question 3

Empirical evidence indicates that

Accepted Answer

A) changes in the earth's cloud cover will clearly enhance the warming effects of carbon dioxide. 
B) the increase in carbon dioxide, over thousands of years, is definitely the cause of global warming. 
C) if global warming continues, the sea levels will definitely rise. 
D) none of the above are true. 
A) changes in the earth's cloud cover will clearly enhance the warming effects of carbon dioxide. 
B) the increase in carbon dioxide, over thousands of years, is definitely the cause of global warming. 
C) if global warming continues, the sea levels will definitely rise. 
D) none of the above are true. D

Question 4

When the federal government owns parks that are funded by tax dollars,

Accepted Answer

A) park managers receive full information about visitor desires and make decisions accordingly. 
B) the same incentive structure exists for public park managers as private park managers. 
C) park managers devote much time and effort to satisfying political desires instead of visitor desires. 
D) park managers will be less likely to mismanage the park. 
A) park managers receive full information about visitor desires and make decisions accordingly. 
B) the same incentive structure exists for public park managers as private park managers. 
C) park managers devote much time and effort to satisfying political desires instead of visitor desires. 
D) park managers will be less likely to mismanage the park.

Question 5

The burning of fossil fuels may cause global warming. Considering both the science and the reactions of crops, human health, and other factors across differing climates, economists generally agree that

Accepted Answer

A) to protect the interests of future generations, the buildup of carbon dioxide must soon be stopped. 
B) any climate change, if it actually occurs, will be extremely costly. 
C) there will be both costs and benefits if the climate warms. 
D) all people will be worse off if the climate warms. 
A) to protect the interests of future generations, the buildup of carbon dioxide must soon be stopped. 
B) any climate change, if it actually occurs, will be extremely costly. 
C) there will be both costs and benefits if the climate warms. 
D) all people will be worse off if the climate warms.

Question 6

Pollution charges will be efficient if

Accepted Answer

A) the charge is just equal to the cost borne by others from the pollution. 
B) the charge is greater than the cost borne by others from the pollution. 
C) the charge is less than the cost borne by others from the pollution. 
D) none of the above. 
A) the charge is just equal to the cost borne by others from the pollution. 
B) the charge is greater than the cost borne by others from the pollution. 
C) the charge is less than the cost borne by others from the pollution. 
D) none of the above.

Question 7

Which of the following would illustrate an example that leads to high transaction costs when dealing with pollution?

Accepted Answer

A) air quality in New York City 
B) water pollution caused by a large number of firms located near the same river 
C) noise pollution near a busy airport 
D) all of the above 
A) air quality in New York City 
B) water pollution caused by a large number of firms located near the same river 
C) noise pollution near a busy airport 
D) all of the above

Question 8

Higher levels of carbon dioxide may be leading to a

Accepted Answer

A) 1 degree (F) level of warming of the earth. 
B) 10 degree (F) level of warming of the earth. 
C) 1 degree (F) level of cooling of the earth. 
D) 10 degree (F) level of cooling of the earth. 
A) 1 degree (F) level of warming of the earth. 
B) 10 degree (F) level of warming of the earth. 
C) 1 degree (F) level of cooling of the earth. 
D) 10 degree (F) level of cooling of the earth.

Question 9

Which of the following is an example of a deficiency caused by a regulatory approach to pollution?

Accepted Answer

A) ignored information provided by market signals 
B) special interests 
C) lack of accountability 
D) all of the above 
A) ignored information provided by market signals 
B) special interests 
C) lack of accountability 
D) all of the above

Question 10

Which of the following would illustrate an example that leads to high transaction costs when dealing with pollution?

Accepted Answer

A) air quality in New York City 
B) water pollution caused by a large number of firms at a location near the same river 
C) noise pollution from aircraft near a busy airport 
D) all of the above 
A) air quality in New York City 
B) water pollution caused by a large number of firms at a location near the same river 
C) noise pollution from aircraft near a busy airport 
D) all of the above

Question 11

Which of the following is, so far, the most utilized method to reduce emissions of industrial pollution to politically chosen levels, while encouraging efficient choices by polluters?

Accepted Answer

A) government pollution charges or taxes 
B) non-tradable emission standards that cap allowable pollution for each emitter 
C) cap and trade emission permits 
D) regulations that would effectively prohibit all emissions 
A) government pollution charges or taxes 
B) non-tradable emission standards that cap allowable pollution for each emitter 
C) cap and trade emission permits 
D) regulations that would effectively prohibit all emissions

Question 12

Government regulation is

Accepted Answer

A) subject to the same problems of lack of information and lack of incentives for economic efficiency as centrally planned economies. 
B) the only reliable way to improve environmental quality. 
C) not subject to political concerns when it comes to environmental quality. 
D) the most economically efficient way to reduce greenhouse gases. 
A) subject to the same problems of lack of information and lack of incentives for economic efficiency as centrally planned economies. 
B) the only reliable way to improve environmental quality. 
C) not subject to political concerns when it comes to environmental quality. 
D) the most economically efficient way to reduce greenhouse gases.

Question 13

"The United States should not sign the Kyoto Protocol, an international treaty that requires industrial nations to limit carbon dioxide emissions to 1990 levels." An economist should be expected to

Accepted Answer

A) disagree with this statement. The science on global warming is clearly known, and the Kyoto Protocol is the best, lowest cost, method to minimize the effects of global warming. 
B) disagree with this statement. Even though much critical information is still missing, the Kyoto Protocol will certainly reduce carbon emissions enough to greatly reduce atmospheric warming. 
C) agree with this statement. The benefits of a warming climate will unquestionably be greater than the costs. 
D) probably agree with this statement. The costs of the Kyoto Protocol are great, and the expected impact from it on world temperatures over the next century is extremely small. 
A) disagree with this statement. The science on global warming is clearly known, and the Kyoto Protocol is the best, lowest cost, method to minimize the effects of global warming. 
B) disagree with this statement. Even though much critical information is still missing, the Kyoto Protocol will certainly reduce carbon emissions enough to greatly reduce atmospheric warming. 
C) agree with this statement. The benefits of a warming climate will unquestionably be greater than the costs. 
D) probably agree with this statement. The costs of the Kyoto Protocol are great, and the expected impact from it on world temperatures over the next century is extremely small.

Question 14

The opportunity cost of slowing global warming by reducing carbon dioxide emissions is

Accepted Answer

A) extremely high because policies that would significantly reduce emissions will adversely affect economic growth. 
B) insignificant compared to the probable impact of warming from those emissions. 
C) irrelevant because each aspect of the environment is important enough to justify full protection from environmental change, at whatever cost is necessary. 
D) zero because fuel cost savings alone will offset all opportunity costs. 
A) extremely high because policies that would significantly reduce emissions will adversely affect economic growth. 
B) insignificant compared to the probable impact of warming from those emissions. 
C) irrelevant because each aspect of the environment is important enough to justify full protection from environmental change, at whatever cost is necessary. 
D) zero because fuel cost savings alone will offset all opportunity costs.

Question 15

When a park is funded by visitors but not by taxpayers in general,

Accepted Answer

A) there will be too few parks because most people will not pay to use a park. 
B) visitors will be better served because poor service would lead to reductions in revenues. 
C) park budgets will decline. 
D) park quality will decline. 
A) there will be too few parks because most people will not pay to use a park. 
B) visitors will be better served because poor service would lead to reductions in revenues. 
C) park budgets will decline. 
D) park quality will decline.

Question 16

Which of the following is an effort to establish property rights and promote more efficient allocation of ocean fisheries?

Accepted Answer

A) Regulations limiting the length of the fishing season. 
B) Regulations reducing the size of fishing boats and other equipment used in the industry. 
C) Establishment of transferable individual fishing quotas. 
D) Complete open access of ocean fishing to anyone who would like to enter the business. 
A) Regulations limiting the length of the fishing season. 
B) Regulations reducing the size of fishing boats and other equipment used in the industry. 
C) Establishment of transferable individual fishing quotas. 
D) Complete open access of ocean fishing to anyone who would like to enter the business.

Question 17

Which of the following is the most efficient way to reduce pollution emissions?

Accepted Answer

A) Emission standards that cap allowable pollution. 
B) Government pollution charges or taxes. 
C) Legislated regulations limiting the quantity of emissions allowed by each firm. 
D) Enforcement of property rights, when those rights are well-defined and transaction costs are low. 
A) Emission standards that cap allowable pollution. 
B) Government pollution charges or taxes. 
C) Legislated regulations limiting the quantity of emissions allowed by each firm. 
D) Enforcement of property rights, when those rights are well-defined and transaction costs are low.

Question 18

The scientific evidence on the causes and consequences of global warming

Accepted Answer

A) is clear and indisputable. 
B) has considerable uncertainty in its findings. 
C) indicates global warming should be stopped regardless of cost. 
D) is of no importance to economists. 
A) is clear and indisputable. 
B) has considerable uncertainty in its findings. 
C) indicates global warming should be stopped regardless of cost. 
D) is of no importance to economists.

Question 19

Regarding wealth and environmental quality,

Accepted Answer

A) richer people are more willing to make sacrifices to gain greater environmental quality. 
B) poor nations are less resilient when faced with the threats caused by environmental degradation. 
C) richer people are more able to make sacrifices to gain greater environmental quality. 
D) all of the above 
A) richer people are more willing to make sacrifices to gain greater environmental quality. 
B) poor nations are less resilient when faced with the threats caused by environmental degradation. 
C) richer people are more able to make sacrifices to gain greater environmental quality. 
D) all of the above

Question 20

The Endangered Species Act

Accepted Answer

A) weakened the property rights of landowners. 
B) encourages landowners to find new ways to provide habitat for listed species. 
C) provides compensation to landowners affected by the law. 
D) has not benefited any of the species protected under the act. 
A) weakened the property rights of landowners. 
B) encourages landowners to find new ways to provide habitat for listed species. 
C) provides compensation to landowners affected by the law. 
D) has not benefited any of the species protected under the act.

Exam 27: Appendix: Difficult Environmental Cases and the Role of Government

Environmental regulation by the government

Economic thinking indicates that efficient adaptation strategies to reduce harms from future global warming will

Empirical evidence indicates that

When the federal government owns parks that are funded by tax dollars,

The burning of fossil fuels may cause global warming. Considering both the science and the reactions of crops, human health, and other factors across differing climates, economists generally agree that

Pollution charges will be efficient if

Which of the following would illustrate an example that leads to high transaction costs when dealing with pollution?

Higher levels of carbon dioxide may be leading to a

Which of the following is an example of a deficiency caused by a regulatory approach to pollution?

Which of the following would illustrate an example that leads to high transaction costs when dealing with pollution?

Which of the following is, so far, the most utilized method to reduce emissions of industrial pollution to politically chosen levels, while encouraging efficient choices by polluters?

Government regulation is

"The United States should not sign the Kyoto Protocol, an international treaty that requires industrial nations to limit carbon dioxide emissions to 1990 levels." An economist should be expected to

The opportunity cost of slowing global warming by reducing carbon dioxide emissions is

When a park is funded by visitors but not by taxpayers in general,

Which of the following is an effort to establish property rights and promote more efficient allocation of ocean fisheries?

Which of the following is the most efficient way to reduce pollution emissions?

The scientific evidence on the causes and consequences of global warming

Regarding wealth and environmental quality,

The Endangered Species Act

The Economic Approach

A: Some Tools of the Economist

B: Some Tools of the Economist

A: Supply, Demand, and the Market Process

B: Supply, Demand, and the Market Process

A: Supply and Demand: Applications and Extensions

B: Supply and Demand: Applications and Extensions

Difficult Cases for the Market and the Role of Government

The Economics of Collective Decision-Making

Consumer Choice and Elasticity

A: Costs and the Supply of Goods

B: Costs and the Supply of Goods

A: Price Takers and the Competitive Process

B: Price Takers and the Competitive Process

Price-Searcher Markets With Low Entry Barriers

A: Price-Searcher Markets With High Entry Barriers

B: Price-Searcher Markets With High Entry Barriers

The Supply of and Demand for Productive Resources

Earnings, Productivity, and the Job Market

Investment, the Capital Market, and the Wealth of Nations

Income Inequality and Poverty

Appendix: Government Spending and Taxation

Appendix: the Economics of Social Security

Appendix: the Stock Market: Its Function, Performance, and Potential As an Investment Opportunity

Appendix: Great Debates in Economics: Keynes Versus Hayek

Appendix: the Crisis of 2008: Causes and Lessons for the Future

Appendix: Lessons From the Great Depression

Appendix: the Economics of Healthcare

Appendix:education: Problems and Performance

Appendix: Earnings Differences Between Men and Women

Appendix: the Question of Resource Exhaustion

Appendix: Do Labor Unions Increase the Wages of Workers

Filters