econ 13

When the government requires specific processes for reducing pollution, it is using

A command-and-control approach.

If firms were charged the full social opportunity cost of the resources they used, there would be

No external costs.

Requiring that a firm engage in pollution abatement will likely do all of the following except

Shift the firm's ATC curve downward.

A completely successful emission charge would

Shift the private MC curve to the same position as the social MC curve.

External costs are the difference between

Social costs and private costs.

In order to maximize social welfare, a firm's production of a good should occur at the output where

Social marginal cost equals social marginal benefit.

External costs are

The difference between social and private costs.

An In the News article is titled "Air Pollution Kills." From a social perspective, this suggests that

Too much output is being produced by the polluting firms.

The Kyoto Treaty

Was not ratified by the United States or Australia.

An In the News article is titled "Air Pollution Kills." The decrease in the length of human life is an example of

An external cost.

Which of the following is an example of bypassing the market through regulation to achieve environmental protection?

Command-and-control standards.

If the government imposed a green tax on gasoline, the amount of air pollution should

Decrease as people switch to more fuel-efficient cars.

All of the following can be costs of environmental cleanup except

Fewer hospital visits.

Government intervention that fails to improve economic outcomes is known as

Government failure.

Producers can be encouraged to internalize external costs by

Imposing pollution fines or higher user fees.

The Kyoto Treaty of 1997 on global greenhouse emissions expired in 2012. The treaty did, however,

Increased the amount of tradable permits globally between Europe and China.

The Environmental Protection Agency estimates that the total cost of pollution to society

Is $50 billion a year.

A market for power plant pollution rights will

Lower pollution control costs.

A polluting company may be able to purchase the right to pollute through

Pollution permits

The primary purpose of tradable pollution permits is to

Reduce the cost of pollution control.