Economics: The Basics 1st Edition by Mike Mandel

Exercise 2

Say whether each of the following statements is true or false.
a) Energy usage per person has risen in the United States in recent years.
b) One reason for the high energy usage per person in the United States is the large size of the country.
c) A profit-maximizing oil producer will keep pumping and selling oil as long as the marginal cost of extraction is less than the market price.
d) Coal's share of the world's energy supply has increased since 1973.
e) When the price of gasoline goes up, consumers buy more of it.
f) Government can encourage conservation by putting a tax on energy.
g) One negative externality from pollution is harm to environmental amenities.
h) We can estimate the monetary value of ecological damage to the environment by using revealed preference techniques.
i) When the government orders a polluting factory to shut down, that's an example of a market-based approach.