Exam 17: Externalities and the Environment

The marginal social cost of air quality increases as air quality increases. If the dirtiest production process would create 700 tons of pollutants, then

Most of the EPA Superfund expenditures have gone for court costs and legal fees.

In order to increase society's well-being, education might be

The Coase theorem argues that the assignment of property rights will generate an efficient solution to the problem of

As more pollution is abated, the total social benefit from pollution abatement increases.

NARRBEGIN: Exhibit 17-5 Exhibit 17-5 -In Exhibit 17-5, if the government sells the right to pollute a river,

The price of a pollution right is

The economic efficiency approach to emission control provides the polluting firm with

If consumption of education creates a positive externality, then in order to increase efficiency relative to the outcome determined by private decisions,

Pollution and other negative externalities arise because

In the United States, what percentage of smog comes from automobiles?

The Clean Air Act of 1970 has

Which of the following did not help account for the recent decline in the growth of trash-to-energy plants?

NARRBEGIN: Exhibit 17-1 Exhibit 17-1 -In Exhibit 17-1, the equilibrium level of output determined by private decisions is

Private markets can allocate resources optimally

An individual who drives a car without a muffler in an attempt to increase fuel economy is creating

If firms pollute when they produce,

NARRBEGIN: Exhibit 17-3 Exhibit 17-3 -In Exhibit 17-3, the optimal air quality level is

The Coase solution to the problem of externalities

In the United States, federal efforts to clean up the environment are coordinated by the