Exam 17: Externalities and the Environment

The marginal social benefit of air quality

A person can cause a negative externality by

The marginal social cost curve is downward sloping under variable technology.

Which of the following has not been used by the US government to limit overfishing in US waters?

A government passes a new law allowing only 1,000 tons of pollution per day to be generated and simultaneously sells 1,000 transferable rights to emit one ton each of pollution per day. Which of the following is true?

All of the following are examples of negative externalities except one. Which is the exception?

Some U.S. cities still dump raw sewage directly into rivers or oceans.

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

To enhance social welfare, the government should encourage the production of

Based on 2005 data what country is the worlds leading recycler?

Among the 25 most developed countries in the world where does the United States rank in terms of recycling?

Which of the following is not an example of an open access resource?

If a private market determines the quantity of smallpox vaccinations, which of the following is true?

Open-access resources tend to be

A tannery discovers a technology that makes it cheaper to reduce the air pollution it generates in making paper. On a graph of the optimal level of air quality, the use of the new technology would be represented by

If the marginal social cost of producing a product exceeds the marginal social benefit, producers will produce less of it.

When an activity results in the imposition of external costs, markets will produce more than the socially optimal level of that activity.

The Clean Air Act of 1970

All of the following are sources of negative externalities except one. Which is the exception?

Most waste generated in the U.S. ends up in landfills because