ch 12

Which of the following have historically been more willing to sacrifice their environmental quality for some additional economic output? high-income, market-oriented economies low incomes and command economies the United States European Union

low incomes and command economies

Around the world, the cities with the dirtiest air and water are typically found in . high-income countries like France and the U.S. in low-income African nations low-income countries in Africa and Asia in low-income East Asian nations

low-income countries in Africa and Asia

A ________ would lead a large greenhouse gas emitter to reduce emissions by less. flat charge higher pollution tax lower pollution tax pollution tax

lower pollution tax

A pollution charge gives the trucking industry an incentive to reduce its emissions, as long as the _________ of reducing the emissions is total cost; less than the tax total cost; equal to the social cost marginal cost; less than the tax marginal cost; equal to the social cost

marginal cost; less than total tax

An economist is more likely to identify _______ as a more efficient and flexible way for society to __________. marketable permits; allow a limited, declining amount of pollution to occur better defined property rights; to address issues of allowable levels of pollution market-oriented environmental tools; enforce strict limits on emissions better defined property rights; to shrink pollution levels over time

marketable permits; allow a limited, declining amount of pollution to occur

The main categories of market-oriented approaches to pollution control are redefined property rights; pollution permits; marketable charges. marketable permits; better-defined property rights; pollution charges. pollution charges; extended property rights; marketable permits. pollution permits; defined property rights; marketable charges.

marketable permits; better-defined property rights; pollution charges.

Which of the following would be classified as a situation where a third party benefits from a market transaction by others? City buying 10,000 trees for green space renewal projects. Increased levels of air pollution in neighborhoods near a football stadium. Allowing a mining company to use a natural lake to discharge waste. Two firms trading pollution credits to avoid cutting their toxic emissions.

City buying 10,000 trees for green space renewal projects.

The problem of pollution typically arises in economies around the world. high-income low-income high or low-income middle income

high or low income

As environmental protection increases, the biggest marginal benefits are achieved first, smaller marginal benefits follow. inexpensive and easy methods of reducing pollution begin to dwindle. the more costly and innovative methods can be readily avoided. in addition to a and b above, the quality of environmental protection increases.

in addition to a and b above, the quality of environmental protection increases.

The International Ecotourism Society estimates that international tourists interested in seeing nature or wildlife spend over $450 billion per year. $550 billion per year. $250 billion annually. $200 billion annually.

$450 billion per year

The challenge of preserving biodiversity, any nation itself can reduce emissions to solve global warming. any nation acting alone can protect biodiversity around the world. includes the full spectrum of animal and plant genetic material. a nation can protect biodiversity within its own borders and c.

a nation can protect biodiversity within its own borders and c.

One concern that environmentalists have is that market-oriented environmental tools are

an excuse to allow pollution to be maintained or to grow

Using the term "spillover" is a less formal means of describing

an externality

The number of people served by advanced wastewater treatment plants doubled between 1968 and the mid-1990s, but because the treatment plants__________, the quantity of waste emitted into the water after treatment _____________. became so much more effective; decreased by about one-third became so much less effective; increased by about one-third remained ineffective; remained the same moderately improved; increased by 10%

became so much more effective; decreased by about one-third

Market-oriented environmental tools _________ for firms to take the social costs of pollution into account and __________ in reacting to these incentives. draw distinctions; lower the social costs incurred lack incentives; prohibit firms from having flexibility create incentives; allow firms some flexibility specify particular technology; lower the social costs incurred

create incentives; allow firms some flexibility

Why do U.S. economists commonly refer to externalities as an example of market failure? firms that are required to pay social costs of externalities produce more externalities present a case where markets consider all social costs externalities present a case where markets only consider some social costs firms avoid having to pay social costs of externalities by lowering prices

externalities present a case where markets only consider some social costs

When a government establishes a marketable permit program to address environmental pollution, it is actually issuing a form of command-and-control regulation. pollution tax. permit to pollute. inflexible, costly regulation.

permit to pollute

Because of the nature of the comprehensive environmental laws adopted during the late 1960s and early 1970s by the United States government, these laws are typically referred to as ___________. positive regulations command and control regulations control and command regulations negative regulations Answer: A Reference:

positive regulations

The objective of imposing a higher pollution tax is to ensure firms have pollution charge credits for all reduced emissions. provide incentive for firms to maintain regulation emission levels. provide adequate incentive for firms to reduce their emissions by more. ensure firms must pay the pollution charge for all reduced emissions.

provide adequate incentive for firms to reduce their emissions by more.

To be effective, U.S. command-and-control environmental regulation required social costs of industrial pollution to become unavoidable business costs. firms to take the social costs of pollution into account. firms to increase their costs by installing specified anti-pollution equipment. the EPA to oversee all environmental laws and all of the above.

the EPA to oversee all environmental laws and all of the above.

A beekeeper decides to locate her business on a plot of land that is between an apple orchard and an elementary school. A positive externality that can result is the cost of the bee hives to the beekeeper. the possibility of the bees stinging the students at the school. the bees helping to pollinate the orchard, leading to more fruit. the honey the bees produce.

the bees helping to pollinate the orchard, leading to more fruit.

Some economists argue that if privately owned firms were required to pay the social costs of their pollution, the result would be: each would create less pollution each would lower production to decrease pollution levels their supply curves will represent all of those social costs the price of goods will rise and a and b above

the price of goods will rise and a and b

A pollution charge is a form of tax imposed on the quantity of pollution that a firm emits. pollution control technologies. every economy in the world. low-income market-orientated industries.

the quantity of pollution that a firm emits