Economics Chapter 16 Which The Following Statements Abo Question Answer

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88. Multiple Choice: Figure: Pollution and Efficiency Refe...

Question Figure: Pollution and Efficiency

Reference: Ref 16-3

(Figure: Pollution and Efficiency) Look at the figure Pollution and Efficiency. If this market, where sulfur

emission is a result of production, produced ________ units of emissions, then ________.

89. Multiple Choice: Figure: Pollution and Efficiency Refe...

Question Figure: Pollution and Efficiency

Reference: Ref 16-3

(Figure: Pollution and Efficiency) Look at the figure Pollution and Efficiency. If this market, where sulfur

emissions are a result of production, produced ________ units of emissions, then ________.

Points: 0

90. Multiple Choice: Figure: Pollution and Efficiency Refe...

Question Figure: Pollution and Efficiency

Reference: Ref 16-3

(Figure: Pollution and Efficiency) Look at the figure Pollution and Efficiency. In this market, where sulfur

emission is a result of production, too much pollution is found when the price is ________ and the

quantity is ________.

91. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min...

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. The efficient quantity of pollution is

_____ tons.

Points: 0

92. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min...

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. At the efficient quantity of pollution:

93. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min...

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. At the efficient quantity of pollution

the marginal social cost of pollution is:

Points: 0

94. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min...

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. At the efficient quantity of pollution

the marginal social benefit of pollution is:

95. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min...

Question

Points: 0

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. The market-determined quantity of

pollution is _____ tons.

96. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min...

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. At the market-determined quantity

of pollution, the marginal social benefit of pollution is:

Points: 0

97. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min...

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. At the market-determined quantity

of pollution, the marginal social cost of pollution is:

98. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min...

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. If 5 tons of pollution is produced,

the marginal social benefit is _______, and the marginal social cost is _______.

Points: 0

99. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min...

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. If 5 tons of pollution is produced,

the outcome is ________ because_______.

100. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min…

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. If 5 tons of pollution is produced:

Points: 0

101. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min…

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. If 2 tons of pollution is produced,

the marginal social benefit is _______, and the marginal social cost is _______.

102. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min…

Question

Points: 0

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. If 2 tons of pollution is produced,

the outcome is ________ because_______.

103. Multiple Choice: Reference: Ref 16-4 (Table: Coal Min…

Question

Reference: Ref 16-4

(Table: Coal Mine Pollution) The table Coal Mine Pollution shows the marginal social benefit and the

marginal social cost of various amounts of pollution from a coal mine. If 2 tons of pollution is produced:

Points: 0

104. Multiple Choice: According to many economists, the gov…

Question According to many economists, the government should:

Answer reduce the level of emissions as far as possible.

105. Multiple Choice: The principal government agency in th...

Question The principal government agency in the United States responsible for enforcing national environmental

policies is the:

Answer Department of Agriculture.

106. Multiple Choice: Which of the following is an example …

Question Which of the following is an example of an environmental standard?

Answer tradable pollution permits

107. Multiple Choice: Laws that require, for example, vehic...

Question Laws that require, for example, vehicles to have catalytic converters or that restrict or prohibit leaf burning

are both examples of:

Answer Pigouvian taxes.

108. Multiple Choice: Economists believe that there are mor…

Question Economists believe that there are more efficient ways to deal with pollution than with environmental

standards because these standards do not:

Answer reduce pollution enough.

Points: 0

109. Multiple Choice: When the government attempts to reduc…

Question When the government attempts to reduce the noise from airplanes by restricting the noise level from a jet

engine to less than 50 decibels, it is using a(n):

110. Multiple Choice: When government attempts to reduce th...

Question When government attempts to reduce the global warming effects caused by the burning of fossil fuels

such as oil, coal, and natural gas by establishing a minimum level of fuel efficiency on new cars, it is

using a(n):

111. Multiple Choice: Your community requires the sewage tr...

Question Your community requires the sewage treatment plant to process raw sewage so that it is safe to return

the water to the environment. This is an example of:

Answer an emissions tax.

112. Multiple Choice: Figure: Environmental Standards versu...

Question

Points: 0

Figure: Environmental Standards versus Emissions Taxes

Reference: Ref 16-5

(Figure: Environmental Standards versus Emissions Taxes) In the figure Environmental Standards versus Emissions

Taxes, if the goal is to limit the total emissions of the two firms, A and B, to 600 tons, the most efficient solution is an

________, and total pollution would be ________ tons.

113. Multiple Choice: Suppose government officials have set...

Question Suppose government officials have set an emissions tax to reduce pollution. Assume the optimal tax

would be $1,500 but government officials have set the tax equal to $500. At the equilibrium with the $500

tax:

114. Multiple Choice: Suppose government officials have set...

Question Suppose government officials have set an emissions tax to reduce pollution. Assume the optimal tax

would be $500 but government officials have set the tax equal to $900. At the equilibrium with the $900

tax:

115. Multiple Choice: If government officials set an emissi…

Points: 0

Question If government officials set an emissions tax too high:

116. Multiple Choice: Suppose government officials have set...

Question Suppose government officials have set an emissions tax to reduce pollution. Further suppose that with

the emissions tax, the marginal social cost of pollution exceeds the marginal social benefit of pollution.

The emissions tax is:

117. Multiple Choice: Which of the following statements abo…

Question Which of the following statements about environmental standards and emissions taxes is correct?

118. Multiple Choice: Suppose an emissions tax is imposed o...

Question Suppose an emissions tax is imposed on all dairy farms in Wisconsin. This tax would have the effect of:

119. Multiple Choice: Figure: Three Firms That Pollute Refe...

Question

Points: 0

Figure: Three Firms That Pollute

Reference: Ref 16-6

(Figure: Three Firms that Pollute) Three firms in a small city are responsible for emitting pollution, and the

marginal benefit of the individual polluters is shown in the figure Three Firms That Pollute. If each

company is allowed to emit only 300 tons of pollution per day, which company will be most adversely

affected?

120. Multiple Choice: Figure: Three Firms That Pollute Refe...

Question Figure: Three Firms That Pollute

Reference: Ref 16-6

(Figure: Three Firms that Pollute) Three firms in a small city are responsible for emitting pollution, and the

marginal benefit of the individual polluters is shown in the figure Three Firms That Pollute. If the city

imposes a tax of $400 per ton of pollution, firm B will produce ________, while firm A will produce

________ of mercury than firm C.

Points: 0

121. Multiple Choice: Figure: Three Firms That Pollute Refe...

Question Figure: Three Firms That Pollute

Reference: Ref 16-6

(Figure: Three Firms that Pollute) In the figure Three Firms That Pollute, at what tax rate would firm C

produce zero tons of pollution?

122. Multiple Choice: Pigouvian taxes are designed to reduce:

Question Pigouvian taxes are designed to reduce:

123. Multiple Choice: Figure: The Optimal Quantity of Pollu…

Question

Points: 0

Figure: The Optimal Quantity of Pollution

Reference: Ref 16-7

(Figure: The Optimal Quantity of Pollution) The figure The Optimal Quantity of Pollution shows the

marginal social cost (MSC) and marginal social benefit (MSB) for firms that pollute the air with sulfur

dioxide. Using the figure, the optimal Pigouvian tax per unit of pollution is:

124. Multiple Choice: If government officials set an emissi…

Question If government officials set an emissions tax too low:

125. Multiple Choice: Taxes are a more effective method of ...

Question Taxes are a more effective method of controlling pollution than environmental standards because:

126. Multiple Choice: The government has adopted an emissio…

Question The government has adopted an emissions tax if it:

Answer

Points: 0

127. Multiple Choice: For the same amount of pollution emit...

Question For the same amount of pollution emitted, an emissions tax is said to be more efficient than an

environmental standard because all polluters:

128. Multiple Choice: The licenses that are exchanged and t…

Question The licenses that are exchanged and that enable the holder to pollute up to a specified amount during a

given period are called:

129. Multiple Choice: Tradable pollution permits are a(n):

Question Tradable pollution permits are a(n):

130. Multiple Choice: Suppose that the federal government d…

Question Suppose that the federal government determines the total level of municipal sewage that can be

discharged by cities along a river. If the cities are able to exchange rights to the total discharge level

among themselves, then the government’s environmental policy includes:

Answer emissions taxes.

Points: 0

131. Multiple Choice: Which of the following is an environm…

Question Which of the following is an environmental policy based on tradable pollution permits?

Answer a charge of 10 cents to automobile drivers for a given level of emitted emissions

132. Multiple Choice: Assume the price of a tradable emissi...

Question Assume the price of a tradable emissions permit for a ton of sulfur dioxide is $150. Which of the following

is incorrect?

133. Multiple Choice: With tradable emissions permits, the ...

Question With tradable emissions permits, the price of the permit is determined by:

Answer the government.

134. Multiple Choice: The licenses that can be bought and s…

Question The licenses that can be bought and sold by polluters and that enable the holder to pollute up to a

specified amount during a given period are called:

Answer emissions taxes.

Points: 0

135. Multiple Choice: Which of the following best describe ...

Question Which of the following best describe tradable emissions permits?

Answer tax system for internalizing emission costs to the market

136. Multiple Choice: Assume the federal government determi…

Question Assume the federal government determines the total level of pollutants that can be discharged by city

industries. A city is able to exchange the rights to this total discharge level with other cities. This is an

example of:

137. Multiple Choice: When tradable emissions permits are u...

Question When tradable emissions permits are used, if the demand for goods that produce emissions shifts to the

right, the equilibrium price of permits ________, and the equilibrium quantity ________.

Answer falls; increases

138. Multiple Choice: With tradable emissions permits, if t...

Question With tradable emissions permits, if the demand for goods that produce emissions shifts to the left, the

equilibrium price of permits ________ and the equilibrium quantity ________.

Answer increases; stays the same

139. Multiple Choice: An advantage of tradable emissions pe…

Question An advantage of tradable emissions permits is that:

Points: 0

Answer pollution costs are easier to measure than emissions taxes.

140. Multiple Choice: Which of the following is an environm…

Question Which of the following is an environmental policy based on tradable emission permits?

Answer a charge to companies of $1 for 100 units of pollutants emitted

141. Multiple Choice: If the number of available tradable e…

Question If the number of available tradable emissions permits is decreased, the equilibrium price of the permits

________ and the equilibrium quantity of emissions ________.

Answer decreases; decreases

142. Multiple Choice: If the number of available tradable e…

Question If the number of available tradable emissions permits increases, the equilibrium price of the permits

________ and the equilibrium quantity ________.

Answer increases; does not change

143. Multiple Choice: There are two plants (A and B) in an ...

Question There are two plants (A and B) in an industry. To reduce pollution, the government has imposed

environmental standards forcing each plant to cut emissions by 60%. At the emissions standard, the

marginal social benefit of pollution for plant A is $500, and the marginal social benefit of pollution for plant

B is $125. The same level of pollution can be achieved at a lower cost by:

Answer forcing plant A to reduce emissions and allowing plant B to increase emissions.

Points: 0