Question 1

Pollution regulation works well because economists,not politicians,are in charge of regulatory bodies.

Accepted Answer

A) True 
 B)False

Question 2

Requiring automobiles to pass emissions tests before being allowed on the road is an example of a(n)

Accepted Answer

A) Direct pollution control 
B) Indirect pollution control 
C) Pollution tax 
D) Market solution to pollution 
E) Positive externality in consumption 
A) Direct pollution control 
B) Indirect pollution control 
C) Pollution tax 
D) Market solution to pollution 
E) Positive externality in consumption

Question 3

Whenever consumers are willing to pay more for an item than it costs to produce it,it is efficient to expand output.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following creates a negative externality in consumption?

Accepted Answer

A) Polluting a river 
B) Playing loud music 
C) Vaccinations 
D) Reducing the cost of producing of another good 
E) Strip mining 
A) Polluting a river 
B) Playing loud music 
C) Vaccinations 
D) Reducing the cost of producing of another good 
E) Strip mining

Question 5

When pollution rights markets are used,the overall level of pollution is reduced if the government sells additional licenses.

Accepted Answer

A) True 
 B)False

Question 6

Under the private property rights approach to pollution control,the industry or firm that most "values" the right to the environment will control environmental services.

Accepted Answer

A) True 
 B)False

Question 7

The Following Questions Refer to the graph below.  
-Assuming that the economy is operating on the PPC TT1,the benefit of increasing pollution is shown on the graph as a movement from

Accepted Answer

A) A2 to A1 
B) C2 to C1 
C) q2 to q1 
D) TT2 to TT1 
E) C2 to 0 
A) A2 to A1 
B) C2 to C1 
C) q2 to q1 
D) TT2 to TT1 
E) C2 to 0

Question 8

The creation of a market for pollution rights eliminates pollution where it is cheapest to do so.

Accepted Answer

A) True 
 B)False

Question 9

With tradable pollution licenses to control pollution,reductions in total pollution

Accepted Answer

A) Can be achieved by having government buy back some of the licenses 
B) Can be achieved by having government sell more licenses 
C) Requires the government to buy back all existing licenses and re-issue new licenses 
D) Cannot be achieved 
E) Is never economically optimal 
A) Can be achieved by having government buy back some of the licenses 
B) Can be achieved by having government sell more licenses 
C) Requires the government to buy back all existing licenses and re-issue new licenses 
D) Cannot be achieved 
E) Is never economically optimal

Question 10

Explicit costs are equal to the value of self-owned resources.

Accepted Answer

A) True 
 B)False

Question 11

Governmental regulations requiring anti-pollution devices on automobiles result in a decrease in the demand for automobiles and an increase in pricE.

Accepted Answer

A) True 
 B)False

Question 12

The Following Questions Refer to the graph below.  
-Which curve is the MSC curve for the water-using firm's product?

Accepted Answer

A) D 
B) S 
C) X1 
D) X2 
E) None of the above 
A) D 
B) S 
C) X1 
D) X2 
E) None of the above

Question 13

Which of the following approaches would an economist propose to address industrial pollution of a river?

Accepted Answer

A) Ban all dumping of pollutants near or into the river 
B) Limit each plant to a maximum amount of pollutant emission 
C) Charge each polluter a fixed amount for each unit of pollutant dumped into the river 
D) Direct pollution control regulation 
E) Command and control pollution regulation 
A) Ban all dumping of pollutants near or into the river 
B) Limit each plant to a maximum amount of pollutant emission 
C) Charge each polluter a fixed amount for each unit of pollutant dumped into the river 
D) Direct pollution control regulation 
E) Command and control pollution regulation

Question 14

Incentives to pollute stem from an absence of property rights in the environment and from the collectively consumed nature of whatever is being polluteD.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following best describes why pollution exists in the environment?

Accepted Answer

A) The environment has no capacity to recycle waste 
B) All materials take a very long time to recycle in the environment 
C) No waste can be completely recycled 
D) Recycling processes fail to prevent wastes from accumulating in the environment 
E) The environment's capacity to recycle exceeds the rate of waste disposal 
A) The environment has no capacity to recycle waste 
B) All materials take a very long time to recycle in the environment 
C) No waste can be completely recycled 
D) Recycling processes fail to prevent wastes from accumulating in the environment 
E) The environment's capacity to recycle exceeds the rate of waste disposal

Question 16

Enforcement is a problem with all methods of pollution regulation.

Accepted Answer

A) True 
 B)False

Question 17

The Following Questions Refer to the graph below.  
-Given that the firm's demand and supply curves are D and S,respectively,which curve is the MSC curve for the polluting firm's product?

Accepted Answer

A) D 
B) S 
C) X1 
D) X2 
E) None of the above 
A) D 
B) S 
C) X1 
D) X2 
E) None of the above

Question 18

The Following Questions Refer to the graph below.  
-What is the efficient quantity of the water-using firm's product?

Accepted Answer

A) Q1 
B) Q2 
C) Q3 
D) 0 
E) It cannot be determined 
A) Q1 
B) Q2 
C) Q3 
D) 0 
E) It cannot be determined

Question 19

The term "marginal social benefit" means

Accepted Answer

A) Benefits that are just above the margin of being zero 
B) The entire benefits obtainable from the activity 
C) That part of the benefits covered by the costs of carrying on the activity 
D) The change in total social benefits per unit change in the amount of the activity 
E) The benefits of minimal quality goods and services 
A) Benefits that are just above the margin of being zero 
B) The entire benefits obtainable from the activity 
C) That part of the benefits covered by the costs of carrying on the activity 
D) The change in total social benefits per unit change in the amount of the activity 
E) The benefits of minimal quality goods and services

Question 20

Those who suffer from pollution may find it to their advantage to

Accepted Answer

A) Have the government enact legislation compelling the polluters to take antipollution measures 
B) Bribe the polluters to control their pollution 
C) Have the government tax pollution at a rate that increases with the amount of pollution generated 
D) Do all of the above 
E) Do none of the above 
A) Have the government enact legislation compelling the polluters to take antipollution measures 
B) Bribe the polluters to control their pollution 
C) Have the government tax pollution at a rate that increases with the amount of pollution generated 
D) Do all of the above 
E) Do none of the above

Pollution regulation works well because economists,not politicians,are in charge of regulatory bodies.

Requiring automobiles to pass emissions tests before being allowed on the road is an example of a(n)

Whenever consumers are willing to pay more for an item than it costs to produce it,it is efficient to expand output.

Which of the following creates a negative externality in consumption?

When pollution rights markets are used,the overall level of pollution is reduced if the government sells additional licenses.

Under the private property rights approach to pollution control,the industry or firm that most "values" the right to the environment will control environmental services.

The Following Questions Refer to the graph below. -Assuming that the economy is operating on the PPC TT₁,the benefit of increasing pollution is shown on the graph as a movement from

The creation of a market for pollution rights eliminates pollution where it is cheapest to do so.

With tradable pollution licenses to control pollution,reductions in total pollution

Explicit costs are equal to the value of self-owned resources.

Governmental regulations requiring anti-pollution devices on automobiles result in a decrease in the demand for automobiles and an increase in pricE.

The Following Questions Refer to the graph below. -Which curve is the MSC curve for the water-using firm's product?

Which of the following approaches would an economist propose to address industrial pollution of a river?

Incentives to pollute stem from an absence of property rights in the environment and from the collectively consumed nature of whatever is being polluteD.

Which of the following best describes why pollution exists in the environment?

Enforcement is a problem with all methods of pollution regulation.

The Following Questions Refer to the graph below. -Given that the firm's demand and supply curves are D and S,respectively,which curve is the MSC curve for the polluting firm's product?

The Following Questions Refer to the graph below. -What is the efficient quantity of the water-using firm's product?

The term "marginal social benefit" means

Those who suffer from pollution may find it to their advantage to

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

Filters

Exam 4: Pollution Problems: Must We Foul Our Own Nests

Pollution regulation works well because economists,not politicians,are in charge of regulatory bodies.

Requiring automobiles to pass emissions tests before being allowed on the road is an example of a(n)

Whenever consumers are willing to pay more for an item than it costs to produce it,it is efficient to expand output.

Which of the following creates a negative externality in consumption?

When pollution rights markets are used,the overall level of pollution is reduced if the government sells additional licenses.

Under the private property rights approach to pollution control,the industry or firm that most "values" the right to the environment will control environmental services.

The Following Questions Refer to the graph below. -Assuming that the economy is operating on the PPC TT1,the benefit of increasing pollution is shown on the graph as a movement from

The creation of a market for pollution rights eliminates pollution where it is cheapest to do so.

With tradable pollution licenses to control pollution,reductions in total pollution

Explicit costs are equal to the value of self-owned resources.

Governmental regulations requiring anti-pollution devices on automobiles result in a decrease in the demand for automobiles and an increase in pricE.

The Following Questions Refer to the graph below. -Which curve is the MSC curve for the water-using firm's product?

Which of the following approaches would an economist propose to address industrial pollution of a river?

Incentives to pollute stem from an absence of property rights in the environment and from the collectively consumed nature of whatever is being polluteD.

Which of the following best describes why pollution exists in the environment?

Enforcement is a problem with all methods of pollution regulation.

The Following Questions Refer to the graph below. -Given that the firm's demand and supply curves are D and S,respectively,which curve is the MSC curve for the polluting firm's product?

The Following Questions Refer to the graph below. -What is the efficient quantity of the water-using firm's product?

The term "marginal social benefit" means

Those who suffer from pollution may find it to their advantage to

Alleviating Human Misery: The Role of Economic Reasoning

Economic Systems, Resource Allocation, and Social Well-Being: Lessons From Chinas Transition

Government Control of Prices in Mixed Systems: Who Are the Winners and Losers

Economics of Crime and Its Prevention: How Much Is Too Much

The Economics of Education: Crisis and Reform

Poverty Problems and Discrimination: Why Are so Many Still so Poor

The Economics of Monopoly Power: Can Markets Be Controlled

The Economics of Professional Sports: What Is the Real Score

Competition in the Global Market-Place: Should We Protect Ourselves From International Trade

Economic Growth: Why Is the Economic Road so Bumpy

Money,Banking and the Financial System: Old Problems With New Twists

Unemployment and Inflation: Can We Find a Balance

Government Spending,Taxation,and the National Debt: Who Wins and Who Loses

Social Security and Medicare: How Secure Is Our Safety Net for the Elderly

Filters

The Following Questions Refer to the graph below. -Assuming that the economy is operating on the PPC TT₁,the benefit of increasing pollution is shown on the graph as a movement from