Question 1

You have got two job offers from two different companies. The first company offered you a salary of $12,000 while the second one offered you a salary of $13,000. You decided to take up the first job after finding you that the company had been rated as a great place to work by an international agency while the other company has not been rated by them. What is your compensating differential in this case?

Accepted Answer

The answer of You have got two job offers from...

Question 2

The figure below shows the marginal social cost (MSC) curve, marginal private cost (MPC) curve and demand (D) curve for a good.
 
-Refer to the figure above. Which of the following is true in this case?

Accepted Answer

A)  The production of the good involves a positive externality. 
B)  The production of the good involves a negative externality. 
C)  The production of the good is subsidized by the government. 
D)  The production of the good in the competitive market leads to a net increase in total surplus.

Question 3

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc.
 
-Refer to the figure above. If the government sets a pollution cap of 200 tons of emission, Beta Inc. will incur an abatement cost of ________.

Accepted Answer

A)  $100 
B)  $200 
C)  $300 
D)  $400

Question 4

The production of Dorexcyl, an industrial chemical , releases fumes that cause breathing difficulties. Is the quantity of the chemical produced under competitive market conditions optimal? Explain with the help of a suitable diagram, how a Pigouvian tax can help to internalize such an externality.

Accepted Answer

The answer of The production of Dorexcyl, an industrial chemical...

Question 5

Pat currently earns $4,250 per month. He is willing to work in a night shift if his employer pays him $500 more than what he gets for the day shift. This implies that Pat's compensating differential in this case is ________.

Accepted Answer

A)  $500 
B)  $3,750 
C)  $4,750 
D)  $5,000

Question 6

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc.
 
-Refer to the figure above. If the government sets a pollution cap of 200 tons of emission, Beta Inc. will incur an abatement cost of ________.

Accepted Answer

A)  0 ton 
B)  100 tons 
C)  200 tons 
D)  300 tons

Question 7

The production of a good generates a foul-smelling gas which is released into air by factories producing the good.
-Refer to the scenario above. Which of the following statements is true?

Accepted Answer

A)  The equilibrium quantity of the good produced in the market equals the socially optimal level. 
B)  The equilibrium price of the good produced in the market equals the socially optimal price. 
C)  The equilibrium quantity of the good produced in the market is likely to be less than the socially optimal level. 
D)  The equilibrium quantity of the good produced in the market is likely to exceed the socially optimal level.

Question 8

Which type of health expenditure can significantly lower social value?

Accepted Answer

The answer of Which type of health expenditure can significantly...

Question 9

John is willing to work at a job that has a 0.02% higher probability of death compared to his current job for $1,800 more per month. The value of his statistical life is ________.

Accepted Answer

A)  $1,800 
B)  $3,600 
C)  $90,000 
D)  $9,000,000

Question 10

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y.
 
-Refer to the figure above. Suppose the government allocates 30 pollution permits to each company and the price of each permit is $1,500. Company ________will earn ________. by selling permits

Accepted Answer

A)  X; $1,000 
B)  X; $15,000 
C)  Y; $10,000 
D)  Y; $1,500

Question 11

What was the main finding of Bleakley?s study on the relationship between childhood diseases or health conditions in childhood and economic conditions later in life?

Accepted Answer

The answer of What was the main finding of Bleakley?s...

Question 12

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y.
 
-Refer to the figure above. Assume that firms are allowed to buy and sell permits. If the government allocates 30 pollution permits to each company and the price of each permit is $1,500, Company X will reduce its emission to ________.

Accepted Answer

A)  5 tons 
B)  10 tons 
C)  15 tons 
D)  20 tons

Question 13

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc.
 
-Refer to the figure above. Which of the following will happen if the government allocates 200 pollution permits to each company and the price of each permit is $300?

Accepted Answer

A)  Beta Inc. will sell 50 permits to Alpha Electric. 
B)  Beta Inc. will sell all the permits to Alpha Electric. 
C)  Beta Inc. will buy all the permits from Alpha Electric. 
D)  Beta Inc. will buy 50 permits from Alpha Electric.

Question 14

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc.
 
-Refer to the figure above. If neither company spends money on pollution abatement, each of them will emit ________.

Accepted Answer

A)  0 ton 
B)  100 tons 
C)  200 tons 
D)  400 tons

Question 15

Which of the following statement is true?

Accepted Answer

A)  The average weight of women has decreased in the United States since the 1970s. 
B)  The percentage of men who are obese has nearly quadrupled since the 1970s. 
C)  The average weight of men has decreased in the United States since the 1970s. 
D)  The percentage of men who are obese has nearly halved since the 1970s in the United States.

Question 16

What is ?carbon capture?? Is it a worthwhile cost to bear to reduce carbon consumption?

Accepted Answer

The answer of What is ?carbon capture?? Is it a...

Question 17

The figure below shows the demand, supply and marginal social cost curves for a steel plant.
 
-Refer to the scenario above. If the government imposes a tax of_____ , output will_____ .

Accepted Answer

A)  $1; fall below the socially optimal level 
B)  $2; rise above the socially optimal level 
C)  $10; fall below the socially optimal level 
D)  $10; rise above the competitive level

Question 18

Which of the following is true of the relationship between marginal social cost (MSC) and marginal private cost (MPC) in the presence of a negative externality?

Accepted Answer

A)  MSC equals the difference between MPC and the marginal external cost. 
B)  MSC is the product of MPC and the marginal external cost. 
C)  MSC is the sum of MPC and the marginal external cost. 
D)  MSC equals the sum of MPC and marginal abatement cost.

Question 19

To an economist,_______

Accepted Answer

A)  each good is priceless 
B)  human life does not have any value 
C)  each good is a substitute for another good 
D)  each good is a bundle of attributes

Question 20

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y.
 
-Refer to the figure above. If the government sets a pollution cap of 30 tons of emission per firm, Company Y will incur an abatement cost of ________.

Accepted Answer

A)  $1,000 
B)  $2,000 
C)  $3,000 
D)  $4,500

Exam 16: Web: Economics of Life, Health, and the Environment

The figure below shows the marginal social cost (MSC) curve, marginal private cost (MPC) curve and demand (D) curve for a good. -Refer to the figure above. Which of the following is true in this case?

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc. -Refer to the figure above. If the government sets a pollution cap of 200 tons of emission, Beta Inc. will incur an abatement cost of ________.

The production of Dorexcyl, an industrial chemical , releases fumes that cause breathing difficulties. Is the quantity of the chemical produced under competitive market conditions optimal? Explain with the help of a suitable diagram, how a Pigouvian tax can help to internalize such an externality.

Pat currently earns $4,250 per month. He is willing to work in a night shift if his employer pays him $500 more than what he gets for the day shift. This implies that Pat's compensating differential in this case is ________.

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc. -Refer to the figure above. If the government sets a pollution cap of 200 tons of emission, Beta Inc. will incur an abatement cost of ________.

The production of a good generates a foul-smelling gas which is released into air by factories producing the good. -Refer to the scenario above. Which of the following statements is true?

Which type of health expenditure can significantly lower social value?

John is willing to work at a job that has a 0.02% higher probability of death compared to his current job for $1,800 more per month. The value of his statistical life is ________.

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y. -Refer to the figure above. Suppose the government allocates 30 pollution permits to each company and the price of each permit is $1,500. Company will earn . by selling permits

What was the main finding of Bleakley?s study on the relationship between childhood diseases or health conditions in childhood and economic conditions later in life?

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc. -Refer to the figure above. Which of the following will happen if the government allocates 200 pollution permits to each company and the price of each permit is $300?

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc. -Refer to the figure above. If neither company spends money on pollution abatement, each of them will emit ________.

Which of the following statement is true?

What is ?carbon capture?? Is it a worthwhile cost to bear to reduce carbon consumption?

The figure below shows the demand, supply and marginal social cost curves for a steel plant. -Refer to the scenario above. If the government imposes a tax of_ , output will_ .

Which of the following is true of the relationship between marginal social cost (MSC) and marginal private cost (MPC) in the presence of a negative externality?

To an economist,_______

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y. -Refer to the figure above. If the government sets a pollution cap of 30 tons of emission per firm, Company Y will incur an abatement cost of ________.

Exam 16: Web: Economics of Life, Health, and the Environment

The figure below shows the marginal social cost (MSC) curve, marginal private cost (MPC) curve and demand (D) curve for a good. -Refer to the figure above. Which of the following is true in this case?

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc. -Refer to the figure above. If the government sets a pollution cap of 200 tons of emission, Beta Inc. will incur an abatement cost of ________.

The production of Dorexcyl, an industrial chemical , releases fumes that cause breathing difficulties. Is the quantity of the chemical produced under competitive market conditions optimal? Explain with the help of a suitable diagram, how a Pigouvian tax can help to internalize such an externality.

Pat currently earns $4,250 per month. He is willing to work in a night shift if his employer pays him $500 more than what he gets for the day shift. This implies that Pat's compensating differential in this case is ________.

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc. -Refer to the figure above. If the government sets a pollution cap of 200 tons of emission, Beta Inc. will incur an abatement cost of ________.

The production of a good generates a foul-smelling gas which is released into air by factories producing the good. -Refer to the scenario above. Which of the following statements is true?

Which type of health expenditure can significantly lower social value?

John is willing to work at a job that has a 0.02% higher probability of death compared to his current job for $1,800 more per month. The value of his statistical life is ________.

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y. -Refer to the figure above. Suppose the government allocates 30 pollution permits to each company and the price of each permit is $1,500. Company ________will earn ________. by selling permits

What was the main finding of Bleakley?s study on the relationship between childhood diseases or health conditions in childhood and economic conditions later in life?

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc. -Refer to the figure above. Which of the following will happen if the government allocates 200 pollution permits to each company and the price of each permit is $300?

The figure below shows the marginal pollution abatement costs of two companies - Alpha Electric and Beta Inc. -Refer to the figure above. If neither company spends money on pollution abatement, each of them will emit ________.

Which of the following statement is true?

What is ?carbon capture?? Is it a worthwhile cost to bear to reduce carbon consumption?

The figure below shows the demand, supply and marginal social cost curves for a steel plant. -Refer to the scenario above. If the government imposes a tax of_____ , output will_____ .

Which of the following is true of the relationship between marginal social cost (MSC) and marginal private cost (MPC) in the presence of a negative externality?

To an economist,_______

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y. -Refer to the figure above. If the government sets a pollution cap of 30 tons of emission per firm, Company Y will incur an abatement cost of ________.

The figure below shows the marginal pollution abatement cost curves of two firms- Company X and Company Y. -Refer to the figure above. Suppose the government allocates 30 pollution permits to each company and the price of each permit is $1,500. Company will earn . by selling permits

The figure below shows the demand, supply and marginal social cost curves for a steel plant. -Refer to the scenario above. If the government imposes a tax of_ , output will_ .