Question 1

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

Accepted Answer

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 2

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?

Accepted Answer

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

Question 3

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 __________.

Accepted Answer

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 4

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

Accepted Answer

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

Question 5

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 __________.

Accepted Answer

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

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

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

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?

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 __.

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

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 __.