Deck 11: Command-And-Control Strategies: the Case of Standards

Question 1

When marginal damages for a pollutant vary by region, time of day, or season, a(n) ________ will not be socially efficient but ________ that set the MAC curve equal to each MDC curve are socially efficient.

A)uniform standard; individual standards
B)ambient standard; uniform standards
C)individual standard; uniform standards
D)technology-based standard; uniform standards

Answer 1

A

Question 2

Smoke stack scrubbers are a requirement on many coal burning, electricity-generating plants.Smoke stack scrubbers are an example of ________________.

A)a technology forcing standard
B)an emissions standard
C)a technology-based standard
D)an ambient standard

Answer 2

C

Question 3

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.

A)the level of abatement that equates MAC and MDC
B)level of emissions that maximizes total abatement cost
C)the level of emissions that minimizes total abatement cost
D)the level of emissions that equates MAC and MDC

Answer 3

D

Question 4

Refer to the figure above.Assume that a firm is facing MAC₁ and an admissions standard of e₂.What is the firm's incentive to engage in R&D so that abatement costs are reduced to MAC₂?

A)a
B)(e+d+c)
C)(a+b+c+d)
D)(a+b)

Question 5

Emission standards are a type of ________ because they refer to end results that are meant to be achieved by the polluters being regulated.

A)technology standard
B)ambient quality standard
C)performance standard
D)compliance cost

Question 6

Ambient standards cannot be enforced ___________.

A)consistently
B)efficiently
C)directly
D)indirectly

Question 7

Refer to the figure above.Assume that a firm is facing MAC₁ and an admissions standard of e₂.What is the firm's cost of compliance for this level of emissions?

A)a
B)(e+d+c)
C)(a+b+c+d)
D)(a+b)

Question 8

Under ________ the burden is on the ________ to make the right decision about what technology to use.

A)technology-forcing standards; pollution control industry
B)technology-based standards; polluting firms
C)technology-based standards; public regulatory authority
D)emission standards; public regulatory authority

Question 9

A(n) ________________ sets a constraint on some performance criterion and allows the polluter to choose how to meet that criterion while a(n) _________________ dictates either decisions or techniques to be used by the polluter

A)emission standard; technology standard
B)technology standard; emission standard
C)public regulatory authority; emission standard
D)emission standard; public regulatory authority

Question 10

If an emission standard is set to the left of the socially efficient point of emissions, the result will be a socially inefficient level of pollution and _________ will be greater than __________.

A)total damages; total abatement costs
B)total abatement costs; total damages
C)marginal damages; marginal abatement costs
D)marginal abatement costs; marginal damages

Question 11

Emissions standards do not yield a particular ambient quality due to the interference of

A)hydrology
B)meteorology
C)human decisions
D)all of the above

Question 12

.
The equimarginal principle states that in order to get the greatest reductions in _______emissions for a given _________ abatement cost, all firms should emit at a point that offers the same marginal abatement cost for each firm.

A)total; total
B)marginal; marginal
C)total; marginal
D)marginal; total

Question 13

Standards that take the form of never-exceed levels for specific pollutants in an ambient environment are known as ________.

A)emission standards
B)ambient standards
C)performance standards
D)technology-based standards

Question 14

Technology standards require the adoption of _______________.

A)technology
B)techniques
C)practices
D)all of the above

Question 15

If an emission standard is set to the left of the socially efficient point of emissions, the result will be a socially inefficient level of pollution and _________ will be greater than __________.

A)total damages; total abatement costs
B)total abatement costs; total damages
C)marginal damages; marginal abatement costs
D)marginal abatement costs; marginal damages

Question 16

If an emission standard is set to the right of the socially efficient point of emissions, the result will be a socially inefficient level of pollution and _________ will be greater than __________.

A)total damages; total abatement costs
B)total abatement costs; total damages
C)marginal damages; marginal abatement costs
D)marginal abatement costs; marginal damages

Question 17

Refer to the figure above.Suppose that MD_u represents the damages associated with ambient levels of benzene in an urban area and MD_r represents those same damages in a rural area.If the ambient emission standard is set at e_u, the standard yields a (n) _________ level of pollution in urban areas but is unnecessarily ____________ for rural areas.

A)socially efficient; strict
B)socially efficient; lenient
C)inefficient; acceptable
D)inefficient; compromised

Question 18

________ set standards that are unrealistic with today's technology in the hope that they will motivate the pollution-control industry to invent ways of meeting the standard at reasonable cost.

A)Technology-based standards
B)Technology-forcing standards
C)Strict emission standards
D)Performance standards

Question 19

A command and control approach to public policy uses _________ in order to bring about socially desirable behavior.

A)incentives
B)mandates
C)moral suasion
D)education

Question 20

One of the problems with command and control standards is that there is __________ incentive to do better than the standard, even though the costs of further emission reductions may be modest.

A)great
B)no
C)limited
D)perverse

Question 21

Emission standards specify the technologies, techniques, or practices that???????___________.

A)are the best practices
B)ensure that there is no health risk to the population
C)achieve the best pollution results with the least possible costs
D)potential polluters must adopt

Question 22

Ambient quality of river water depends on

A)Emissions
B)Hydrology
C)Meteorology
D)A and B

Question 23

Refer to the figure above.Assume that a firm is facing MAC₁ and an admissions standard of e₂.What is the firm's reduction in compliance costs in obtaining the emission standard of e₂ if the firm is successful in reducing abatement costs from MAC₁ to MAC₂?

A)a
B)(e+d+c)
C)(a+b+c+d)
D)(a+b)

Question 24

When marginal damages for a pollutant vary by region, time of day, or season, a uniform standard

A)a uniform standard yields a socially efficient level of pollution
B)individual standards that equate the MAC to each MDC yield a socially efficient level of pollution
C)there is no current regulation approach that will yield a socially efficient level of pollution
D)technology standards yield a social efficient level of pollution

Question 25

There are several ways to monitor a firm's emissions, included among these are

A)self monitoring
B)remote monitoring technology
C)continuous measurement with electronic monitoring
D)all of the above