Exam 17: Externalities and the Environment

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government sells the right to pollute a river, _____. Figure 17.5

(Multiple Choice)

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Question 41

In order to increase a society's total welfare, a production process that produces a negative externality should be _____.

(Multiple Choice)

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Question 42

To achieve the socially optimal level of pollution, the biggest polluters should be targeted for the greatest reduction in pollution.

(True/False)

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Question 43

The Coase solution to the externality problem works only when bargaining costs are high.

(True/False)

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Question 44

If consuming a good creates a positive externality, _____.

(Multiple Choice)

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Question 45

Which of the following is not used by the U.S. government to limit overfishing in U.S. waters?

(Multiple Choice)

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Question 46

If the marginal social benefit of consuming a product exceeds the marginal social cost, social welfare:

(Multiple Choice)

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Question 47

When using the economic efficiency approach to control air and water pollution, the government:

(Multiple Choice)

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Question 48

A metal-stamping factory moves next to a day care center. Noise from the factory makes it impossible for the kids to nap. It would cost the factory $5 million to move and $1 million for the day care center to move. Sound insulation for the factory costs $1 million; insulation for the day care center costs $200,000. The court initially determines that the day care center has the property right. But, on appeal, the factory is awarded the property right. Which of the following is likely to be true given the scenario?

(Multiple Choice)

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Question 49

Unpriced byproducts of production or consumption that provide benefits to other consumers or other firms are known as:

(Multiple Choice)

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Question 50

It is in the long-run economic interest of the world to preserve rainforests, but it is not in the short-run economic interest of the inhabitants of the countries involved to do so.

(True/False)

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Question 51

A meditation class meets on the second floor of a building; the first floor is a dance academy. The loud music from the academy disturbs the meditation classes. The academy could be soundproofed for a cost of $6,000 or move at a cost of $9,000. The class cannot be soundproofed enough to overcome the music, but could be moved for $5,000. According to the Coase theorem, a socially optimal solution can be achieved if:

(Multiple Choice)

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Question 52

The equilibrium price and quantity in a free market usually reflect private marginal costs and benefits, not social ones.

(True/False)

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Question 53

The following graph shows the market for pollution rights in an economy. The social welfare loss that results from 70 units of air quality is shown by area _____. Figure 17.3

(Multiple Choice)

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Question 54

When the consumption of a good or service imposes costs to society that are not reflected in the market price of the good, _____.

(Multiple Choice)

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Question 55

The price of a pollution right is _______.

(Multiple Choice)

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Question 56

According to the Coase theorem, externality problems may be solved if the parties involved can negotiate. Which of the following is also required for an efficient solution?

(Multiple Choice)

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Question 57

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government does not charge firms for polluting the river, the ______. Figure 17.5

(Multiple Choice)

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Question 58

Suppose the production of electricity generates pollution. In this case, the optimal level of electricity is produced when the marginal social benefit from electricity production equals the _____.

(Multiple Choice)

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Question 59

In a free market, a firm's equilibrium output is determined:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 150

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government sells the right to pollute a river, _____. Figure 17.5

In order to increase a society's total welfare, a production process that produces a negative externality should be _____.

To achieve the socially optimal level of pollution, the biggest polluters should be targeted for the greatest reduction in pollution.

The Coase solution to the externality problem works only when bargaining costs are high.

If consuming a good creates a positive externality, _____.

Which of the following is not used by the U.S. government to limit overfishing in U.S. waters?

If the marginal social benefit of consuming a product exceeds the marginal social cost, social welfare:

When using the economic efficiency approach to control air and water pollution, the government:

Unpriced byproducts of production or consumption that provide benefits to other consumers or other firms are known as:

It is in the long-run economic interest of the world to preserve rainforests, but it is not in the short-run economic interest of the inhabitants of the countries involved to do so.

The equilibrium price and quantity in a free market usually reflect private marginal costs and benefits, not social ones.

The following graph shows the market for pollution rights in an economy. The social welfare loss that results from 70 units of air quality is shown by area _____. Figure 17.3

When the consumption of a good or service imposes costs to society that are not reflected in the market price of the good, _____.

The price of a pollution right is _______.

According to the Coase theorem, externality problems may be solved if the parties involved can negotiate. Which of the following is also required for an efficient solution?

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government does not charge firms for polluting the river, the ______. Figure 17.5

Suppose the production of electricity generates pollution. In this case, the optimal level of electricity is produced when the marginal social benefit from electricity production equals the _____.

In a free market, a firm's equilibrium output is determined:

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, Entrepreneurship, and Corporate Finance

Transaction Costs, Asymmetric Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Poverty and Redistribution

International Trade

International Finance

Economic Development

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Exam 17: Externalities and the Environment

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government sells the right to pollute a river, _____.​ ​ Figure 17.5 ​

In order to increase a society's total welfare, a production process that produces a negative externality should be _____.​

To achieve the socially optimal level of pollution, the biggest polluters should be targeted for the greatest reduction in pollution.​

The Coase solution to the externality problem works only when bargaining costs are high.​

If consuming a good creates a positive externality, _____.​

Which of the following is not used by the U.S. government to limit overfishing in U.S. waters?​

If the marginal social benefit of consuming a product exceeds the marginal social cost, social welfare:​

When using the economic efficiency approach to control air and water pollution, the government:​

Unpriced byproducts of production or consumption that provide benefits to other consumers or other firms are known as:​

It is in the long-run economic interest of the world to preserve rainforests, but it is not in the short-run economic interest of the inhabitants of the countries involved to do so.​

The equilibrium price and quantity in a free market usually reflect private marginal costs and benefits, not social ones.​

The following graph shows the market for pollution rights in an economy. The social welfare loss that results from 70 units of air quality is shown by area _____.​ ​ Figure 17.3 ​

When the consumption of a good or service imposes costs to society that are not reflected in the market price of the good, _____.​

The price of a pollution right is _______.​

According to the Coase theorem, externality problems may be solved if the parties involved can negotiate. Which of the following is also required for an efficient solution?​

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government does not charge firms for polluting the river, the ______.​ ​ Figure 17.5 ​

Suppose the production of electricity generates pollution. In this case, the optimal level of electricity is produced when the marginal social benefit from electricity production equals the _____.​

In a free market, a firm's equilibrium output is determined:​

The Art and Science of Economic Analysis

Economic Tools and Economic Systems

Economic Decision Makers

Demand, Supply, and Markets

Elasticity of Demand and Supply

Consumer Choice and Demand

Production and Cost in the Firm

Perfect Competition

Monopoly

Monopolistic Competition and Oligopoly

Resource Markets

Labor Markets and Labor Unions

Capital, Interest, Entrepreneurship, and Corporate Finance

Transaction Costs, Asymmetric Information, and Behavioral Economics

Economic Regulation and Antitrust Policy

Public Goods and Public Choice

Poverty and Redistribution

International Trade

International Finance

Economic Development

Filters

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government sells the right to pollute a river, _____. Figure 17.5

In order to increase a society's total welfare, a production process that produces a negative externality should be _____.

To achieve the socially optimal level of pollution, the biggest polluters should be targeted for the greatest reduction in pollution.

The Coase solution to the externality problem works only when bargaining costs are high.

If consuming a good creates a positive externality, _____.

Which of the following is not used by the U.S. government to limit overfishing in U.S. waters?

If the marginal social benefit of consuming a product exceeds the marginal social cost, social welfare:

When using the economic efficiency approach to control air and water pollution, the government:

Unpriced byproducts of production or consumption that provide benefits to other consumers or other firms are known as:

It is in the long-run economic interest of the world to preserve rainforests, but it is not in the short-run economic interest of the inhabitants of the countries involved to do so.

The equilibrium price and quantity in a free market usually reflect private marginal costs and benefits, not social ones.

The following graph shows the market for pollution rights in an economy. The social welfare loss that results from 70 units of air quality is shown by area _____. Figure 17.3

When the consumption of a good or service imposes costs to society that are not reflected in the market price of the good, _____.

The price of a pollution right is _______.

According to the Coase theorem, externality problems may be solved if the parties involved can negotiate. Which of the following is also required for an efficient solution?

The following graph shows the optimal allocation of pollution rights to firms polluting a river. If the government does not charge firms for polluting the river, the ______. Figure 17.5

Suppose the production of electricity generates pollution. In this case, the optimal level of electricity is produced when the marginal social benefit from electricity production equals the _____.

In a free market, a firm's equilibrium output is determined: