Exam 17: Externalities, the Environment, and Natural Resources

Suppose that because of climatic conditions,the smog levels in Los Angeles suddenly soar to dangerous levels.The most successful policy in this case would be

Economists generally prefer to deal with emissions of pollutants

Even if demand for a resource grows over time,ever-rising prices of the resource that result from its growing scarcity still discourage consumption.

In Eastern Europe and the countries of the former Soviet Union,

In practice,taxes on emissions of pollutants have been found to

The price of an exhaustible resource sold in a perfectly competitive market in which technology and consumer preferences do not change over time will tend to

Define the following terms and explain their importance to the study of economics. a.greenhouse gases b.externality c.emissions permits d.known reserves

The environmental problems of the former Soviet Union

Which of the following is an advantage to the pollution-rights approach to environmental quality?

Explain why environmental damage would be classified as an externality.

Requiring all firms to reduce emissions by the same percentage is

Economists consider environmental pollution to be a(n)

What has happened to resource prices in the twentieth century and what do they reveal about resource scarcity?

By providing free garbage removal,a community

How does the price system cope with depletable resources?

Contrary to most thinking,governments play ____ in causing pollution.

Pollution problems

When a resource is being depleted and becomes scarce,the market's way of encouraging conservation is for the price of the resource to rise,without any government intervention.

Under an emissions tax program,the government sets ____; under an emissions permits program,the government sets ____.

Which of the following would not lead to more conservation?