Question 1

A positive externality arises in a situation where a third party, outside the transaction,

Accepted Answer

A)   fails to allocate resources efficiently.
B)   suffers from a market transaction by others.
C)   benefits from a market transaction by others.
D)   pays a pollution tax to balance social costs.E) C) and D)
F) B) and D)

Question 2

Briefly explain the likely results of increasing the extent of environmental regulation.

Accepted Answer

As the extent of environment regulation ...

Question 3

Bulgaria primarily produces two goods, nesting dolls and grapes. The production of both goods primarily requires labor. The following table shows possible combinations of nesting dolls and grapes.

Which of the following points is not feasible?

Accepted Answer

A)   A
B)   B
C)   C
D)   DE) B) and C)
F) B) and D)

Question 4

Michigan MI)  and Wisconsin WI)  both border Lake Michigan. Both states pollute Lake Michigan and both states suffer the consequences of the pollution. However, the two states face a prisoner's dilemma of the sort studied in Chapter 12. Each country must decide whether to protect or not to protect Lake Michigan from pollution. The payoffs from the choices are shown in the table below.

From the table, we know that if Wisconsin chooses to protect the lake, Michigan will choose to _______
The lake. If Wisconsin chooses to not protect the lake, Michigan will choose to _______ the lake

Accepted Answer

A)   protect, protect
B)   not protect, protect
C)   protect, not protect
D)   not protect, not protectE) A) and C)
F) A) and B)

Question 5

The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby river is given in the table below.

The equilibrium price and quantity when only private costs are taken into account are

Accepted Answer

A)   Price = $55, Quantity = 30
B)   Price = $40, Quantity = 55
C)   Price = $30, Quantity = 20
D)   Price = $30, Quantity = 80E) A) and B)
F) None of the above

Question 6

The property rights approach to environmental issues often becomes highly relevant in cases involving _______.

Accepted Answer

A)   greenhouse gas emissions
B)   harmful affects of acid rain
C)   endangered species
D)   fresh water resourcesE) All of the above
F) B) and C)

Question 7

The flexibility of marketable permits program developed for the oil refining industry is credited
With achieving the reduction in lead pollution for _______ control regulation would have required.

Accepted Answer

A)   at least 50%
B)   50%
C)   20%
D)   at least 20%E) A) and B)
F) A) and D)

Question 8

Briefly explain what is meant by the term "externality" and how it occurs.

Accepted Answer

An externality, which is sometimes also ...

Question 9

Briefly discuss the shortcomings of environmental command-and-control regulations.

Accepted Answer

Although environmental command-and-cont...

Question 10

Low and middle-income societies correctly point out that high-income countries have historically

Accepted Answer

A)   been the primary contributors to greenhouse warming.
B)   been the primary contributors to reduced biodiversity.
C)   failed to put environmental protection ahead of corporate profits.
D)   legitimately lacked moral standing in addition to all the above.E) A) and D)
F) None of the above

Question 11

If a glass manufacturer has only a few _______ of reducing pollutants, it will _______.

Accepted Answer

A)   costly ways; end up paying the pollution tax.
B)   inexpensive ways; incur the pollution tax instead.
C)   costly ways; do so to minimize its pollution taxes.
D)   inexpensive ways; buy the most expensive technology.E) B) and D)
F) C) and D)

Question 12

What type of environmental tool was adopted by the U.S. government in 1990, in order to reduce emissions of coal burning electricity-generating plants?

Accepted Answer

A)   shrinkable marketable permits
B)   free marketable permits
C)   command-and-control permits
D)   both a and b aboveE) B) and C)
F) A) and C)

Question 13

The arguments presented by economists regarding U.S. environmental command-and-control regulations generally

Accepted Answer

A)   accept the goal of reducing pollution.
B)   question the regulations as being the best policy tools for meeting reduction goals.
C)   assert that these laws are clear of the usual fine print, loopholes and exceptions.
D)   lack flexibility and a and b above.E) All of the above
F) A) and C)

Question 14

Michigan MI)  and Wisconsin WI)  both border Lake Michigan. Both states pollute Lake Michigan and both states suffer the consequences of the pollution. However, the two states face a prisoner's dilemma of the sort studied in Chapter 12. Each country must decide whether to protect or not to protect Lake Michigan from pollution. The payoffs from the choices are shown in the table below.

From the table, we know that the outcome of this game will be

Accepted Answer

A)   neither state choosing to protect the lake
B)   Wisconsin choosing to not protect the lake, Michigan choosing to protect the lake
C)   Wisconsin choosing to protect the lake, Michigan choosing to not protect the lake
D)   both states choosing to protect the lakeE) A) and B)
F) None of the above

Question 15

Some of the leading ecotourism destinations include:

Accepted Answer

A)   Costa Rica and Panama in Central America
B)   Malaysia and the Galapagos Islands
C)   the Serengeti in Tanzania; the Amazon rain forests
D)   the Caribbean, New Zealand and all of the aboveE) B) and C)
F) All of the above

Question 16

If pollutants are emitted into the air and water, what costs might be incurred as a result?

Accepted Answer

A)   compromised recreation possibilities
B)   decreased property values
C)   loss from destruction of wildlife habitat
D)   health injuries and all of the aboveE) B) and C)
F) None of the above

Question 17

Since 1969, when the Cuyahoga River in Ohio was so polluted that it spontaneously burst into flame, the overall quality of water in the U.S. has

Accepted Answer

A)   steadily declined.
B)   remained unchanged.
C)   steadily improved.
D)   remained a non-issue.E) All of the above
F) B) and D)

Question 18

If no externalities of pollution exist in a particular industry, the interaction of demand and supply _______.

Accepted Answer

A)   is based on benefits individuals perceive while maximizing utility
B)   is based on choices about production relative to total average costs
C)   will coordinate social costs and benefits
D)   shifts so supply has no relation to social costsE) None of the above
F) A) and B)

Question 19

The problem of pollution typically arises in _______economies around the world.

Accepted Answer

A)   high-income
B)   low-income
C)   high or low-income
D)   middle incomeE) C) and D)
F) B) and C)

Question 20

The term _______ refers to a market exchange that affects a third party who is outside or external to the exchange.

Accepted Answer

A)   social costs
B)   spillover
C)   market failure
D)   private costsE) A) and B)
F) A) and C)

Exam 12: Environmental Protection and Negative Externalities

The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby river is given in the table below. The equilibrium price and quantity when only private costs are taken into account are

Correct Answer
verified

If no externalities of pollution exist in a particular industry, the interaction of demand and supply _______.

Correct Answer
verified

Some of the leading ecotourism destinations include:

Correct Answer
verified

What type of environmental tool was adopted by the U.S. government in 1990, in order to reduce emissions of coal burning electricity-generating plants?

Correct Answer
verified

If a glass manufacturer has only a few _ of reducing pollutants, it will _.

Correct Answer
verified

The problem of pollution typically arises in _______economies around the world.

Correct Answer
verified

Low and middle-income societies correctly point out that high-income countries have historically

Correct Answer
verified

Bulgaria primarily produces two goods, nesting dolls and grapes. The production of both goods primarily requires labor. The following table shows possible combinations of nesting dolls and grapes. Which of the following points is not feasible?

Correct Answer
verified

Briefly discuss the shortcomings of environmental command-and-control regulations.

Correct Answer
verified
Although environmental command-and-cont...
View Answer

Briefly explain what is meant by the term "externality" and how it occurs.

Correct Answer
verified
An externality, which is sometimes also ...
View Answer

Since 1969, when the Cuyahoga River in Ohio was so polluted that it spontaneously burst into flame, the overall quality of water in the U.S. has

Correct Answer
verified

The term _______ refers to a market exchange that affects a third party who is outside or external to the exchange.

Correct Answer
verified

Correct Answer
verified

The flexibility of marketable permits program developed for the oil refining industry is credited With achieving the reduction in lead pollution for _______ control regulation would have required.

Correct Answer
verified

The property rights approach to environmental issues often becomes highly relevant in cases involving _______.

Correct Answer
verified

A positive externality arises in a situation where a third party, outside the transaction,

Correct Answer
verified

If pollutants are emitted into the air and water, what costs might be incurred as a result?

Correct Answer
verified

The arguments presented by economists regarding U.S. environmental command-and-control regulations generally

Correct Answer
verified

Correct Answer
verified

Briefly explain the likely results of increasing the extent of environmental regulation.

Correct Answer
verified
As the extent of environment regulation ...
View Answer

Exam 12: Environmental Protection and Negative Externalities

The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby river is given in the table below. The equilibrium price and quantity when only private costs are taken into account are

Correct AnswerverifiedShow Answer

If no externalities of pollution exist in a particular industry, the interaction of demand and supply _______.

Correct AnswerverifiedShow Answer

Some of the leading ecotourism destinations include:

Correct AnswerverifiedShow Answer

What type of environmental tool was adopted by the U.S. government in 1990, in order to reduce emissions of coal burning electricity-generating plants?

Correct AnswerverifiedShow Answer

If a glass manufacturer has only a few _______ of reducing pollutants, it will _______.

Correct AnswerverifiedShow Answer

The problem of pollution typically arises in _______economies around the world.

Correct AnswerverifiedShow Answer

Low and middle-income societies correctly point out that high-income countries have historically

Correct AnswerverifiedShow Answer

Bulgaria primarily produces two goods, nesting dolls and grapes. The production of both goods primarily requires labor. The following table shows possible combinations of nesting dolls and grapes. Which of the following points is not feasible?

Correct AnswerverifiedShow Answer

Briefly discuss the shortcomings of environmental command-and-control regulations.

Correct Answerverified Although environmental command-and-cont...View AnswerShow Answer

Briefly explain what is meant by the term "externality" and how it occurs.

Correct AnswerverifiedAn externality, which is sometimes also ...View AnswerShow Answer

Since 1969, when the Cuyahoga River in Ohio was so polluted that it spontaneously burst into flame, the overall quality of water in the U.S. has

Correct AnswerverifiedShow Answer

The term _______ refers to a market exchange that affects a third party who is outside or external to the exchange.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The flexibility of marketable permits program developed for the oil refining industry is credited With achieving the reduction in lead pollution for _______ control regulation would have required.

Correct AnswerverifiedShow Answer

The property rights approach to environmental issues often becomes highly relevant in cases involving _______.

Correct AnswerverifiedShow Answer

A positive externality arises in a situation where a third party, outside the transaction,

Correct AnswerverifiedShow Answer

If pollutants are emitted into the air and water, what costs might be incurred as a result?

Correct AnswerverifiedShow Answer

The arguments presented by economists regarding U.S. environmental command-and-control regulations generally

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Briefly explain the likely results of increasing the extent of environmental regulation.

Correct AnswerverifiedAs the extent of environment regulation ...View AnswerShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

If a glass manufacturer has only a few _ of reducing pollutants, it will _.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Although environmental command-and-cont...
View Answer

Correct Answer
verified
An externality, which is sometimes also ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
As the extent of environment regulation ...
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