MICRO Week 14

The refundable charge of 5 or 10 cents for returning recyclable cans and bottles works like

a pollution tax incentive to avoid littering

While the traditional approach of U.S. government policies for environmental protection has had some level of success, some economists are proposing a change to

a range of more flexible, market-oriented pollution control policies.

which of the following is an example of a "club good"

cell phone signals

public domain technologies become more difficult to obtain

converting a derelict empty lot to a public vegetable garden

An individual who wants others to pay for public goods, but plans to use those goods for their own purposes, is often referred to as a __________________.

free rider

Why would a typical U.S. business fail to take the social costs of pollution into consideration during the development of their operating strategies?

it isn't required to pay any of the cost of cleaning up its pollution

A pollution charge gives the trucking industry an incentive to reduce its emissions, as long as the of reducing the emissions is ___________.

marginal cost; less than he tax

When it is costly or impossible to exclude someone who hasn't paid to use a particular good from using it, then that good is classified as being

nonexcludable

A public good is a good that is ____________________ , and thus is difficult for market producers to sell to individual consumers.

nonexcludable and nonrivalrous

In order for a good to be classified as ______________ , when one person uses the good, others are also able to use it.

nonrivalrous

If the maintenance fees for a lighthouse are paid in full each year by charging port fees, then the lighthouse is

nonrivalrous and nonexcludable

For a positive externality, _________________________ than the social benefits.

private benefits of an action are less

For a negative externality, the______________ than the costs imposed on society as a whole.

private costs of an action are less

What type of good is non-rivalrous and non-excludable?

public goods

Cathy can take either of two separate roads to drive to work. The first is a lightly used new toll road that is rarely congested. The second road is a local road with no tolls, but it is often congested and has many potholes. In this instance, the toll road is

rivalrous and nonexcludable

There is a skating rink in your city that is open to anybody to use at any time. They even provide skates for people who don't own any. This is an example of a good that is

rivalrous and nonexcludable

Traditionally, policies for environmental protection in the U.S. have focused on__________pollutant could be emitted.

setting limits for how much of each

If a government wants to establish a marketable permit program, it must begin by determining

the overall quantity of a certain pollutant that will be allowed

If large numbers of individuals choose to behave as free riders,

the public good may never be provided

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

will coordinate social costs and benefits