Question 1

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

Accepted Answer

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

Question 2

________ 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.

Accepted Answer

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

Question 3

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

Accepted Answer

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

Question 4

The Barber, Cosmetology, Esthetics, Hair Braiding, and Nail Technology Act requires hospital grade disinfectant be used at workstations after each client. This is an example of

Accepted Answer

A)   a technology standard
B)   an emissions standard
C)   an ambient standard
D)   a property rights standard

Question 5

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

Accepted Answer

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

Question 6

Technology standards require the adoption of _______________.

Accepted Answer

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

Question 7

Ambient standards cannot be enforced ___________.

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

A)   the level of abatement that equates MAC and MD
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 MD

Question 10

Refer Table 1 above. The table reveals the marginal abatement costs of three firms related to the quantity of emissions. Each firm is now emitting 10 tons/week, so total emissions are 30 tons/week. Suppose we wish to reduce total emissions by 50 percent, to 15 tons per week. What is the cost of this reduction via the equimarginal principle?

Accepted Answer

A)   $33
B)   $69
C)   $72
D)   $96

Question 11

__________________ is one that reduces each source by the same percentage of its original.

Accepted Answer

A)   An equiproportionate cutback
B)   An efficiency point
C)   A marginalized cost
D)   Inefficiency

Question 12

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

Accepted Answer

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

Question 13

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 14

Ambient quality of river water depends on ____________.

Accepted Answer

A)   emissions
B)   hydrology
C)   meteorology
D)   A and B

Question 15

The Massachusetts Department of Environmental Protection has banned the disposal of commercial organic waste by businesses and institutions that dispose of one ton or more of the materials per week. This is an example of

Accepted Answer

A)   a technology standard
B)   an emissions standard
C)   an ambient standard
D)   a property rights standard

Question 16

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

Question 17

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 18

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

Accepted Answer

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

Question 19

The World Health Organization sets guidelines for exposure to carbon monoxide at a 10ppm or less average over 8 hours. This is an example of

Accepted Answer

A)   a technology standard
B)   an emissions standard
C)   an ambient standard
D)   a property rights standard

Question 20

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

Accepted Answer

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

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

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

________ 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.

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

The Barber, Cosmetology, Esthetics, Hair Braiding, and Nail Technology Act requires hospital grade disinfectant be used at workstations after each client. This is an example of

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

Technology standards require the adoption of _______________.

Ambient standards cannot be enforced ___________.

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

__________________ is one that reduces each source by the same percentage of its original.

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

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

Ambient quality of river water depends on ____________.

The Massachusetts Department of Environmental Protection has banned the disposal of commercial organic waste by businesses and institutions that dispose of one ton or more of the materials per week. This is an example of

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 __.

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

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

The World Health Organization sets guidelines for exposure to carbon monoxide at a 10ppm or less average over 8 hours. This is an example of

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