Exam 17: Externalities, the Environment, and Natural Resources

The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth and which protects humans from ultraviolet radiation.Output of this substance has been restricted by a licensing system where producers have to bid in the open market for licenses to produce them in specified quantities.This is an example of dealing with externalities by

As a resource becomes more scarce,we expect its price to

The British economist A.C.Pigou

As a competitive economy uses its stocks of a depletable resource,

Recycling rates for aluminum,paper,and glass have been increasing in the United States.

Voluntarism as an approach to environmental problems

Part of the pollution problem is due to

Water quality in the United States has ____ in the past 25 years.

Direct controls have traditionally been used heavily to control pollution in the U.S.

To protect the environment,governments in the United States have mainly used

Which of the following is an example of detrimental externality?

If one adopts a pure free market approach to depletable resources,then one can expect the price of resources to

Pollution is an example of a negative externality.

The price of a depletable natural resource last year rose more than expected.The most likely explanation is that

Economists believe it is feasible and desirable to reduce environmental damage to zero.

The share of the burden of an emissions tax on output borne by the consumer of the polluting output will rise as

In North Carolina,a car must pass an emissions test before it can be registered.The emissions test costs $20 per car.This system is an example of

The "greenhouse effect" is predicted to

Externalities are commonly generated from

Centrally planned economies like China produce relatively little pollution.