Question 1

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

Accepted Answer

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 2

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 3

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

Accepted Answer

A)  a uniform standard yields a socially efficient level of pollution. 
B)  individual standards that equate the MAC to each MD 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 4

Boulder, Colorado, sets the maximum number of decibels permitted by a source from 7 a.m. to 11 p.m. in a residential area to be 55dBA. One exception is if the sound was made by an animal. 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

Total emissions from 2-stoke, leaf blowers can be decreased by

Accepted Answer

A)  reducing the number of leaf blowers in use 
B)  changing the power technology of leaf blowers 
C)  tightening emissions standards of 2-stroke engines 
D)  all of above

Question 6

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

Accepted Answer

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

Question 7

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.

Accepted Answer

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

Question 8

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.

Accepted Answer

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

Question 9

Refer Table 1above. 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 an equiproportionate decrease in emissions for each firm?

Accepted Answer

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

Question 10

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

Accepted Answer

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

Question 11

Refer to the Figure above. Assume that a firm is facing MAC1 and an emissions 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 12

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 MD curve are socially efficient.

Accepted Answer

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

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

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

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 __.

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

Boulder, Colorado, sets the maximum number of decibels permitted by a source from 7 a.m. to 11 p.m. in a residential area to be 55dBA. One exception is if the sound was made by an animal. This is an example of

Total emissions from 2-stoke, leaf blowers can be decreased by

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

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.

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.

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

Refer to the Figure above. Assume that a firm is facing MAC₁ and an emissions 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?

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 MD curve are socially efficient.