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ECON 2J03 Quiz 2 Questions and Answers_ 2025.
set to the left of the socially efficient point of emissions, the result will be a socially
ineffiNet social gains are independent of who has the
property rights to environmental resources.
Question 1 options: True Refer to the Figure Below. The firm is facing an emissions charge of t and an abatement cost curve of MAC 1. If the firm is able to lower its abatement cost curve to MAC2, it will C. emit at level e 2 and save (c+d).
Enforcement costs are critical to the success of
environmental programs and should be included in the
overall social costs of the program when evaluating
different policy options.
Question 2 options:
Refer to the Figure below. The firm is facing an emissions
charge of t and an abatement cost curve of MAC 1. If the firm is
able to lower its abatement cost curve to MAC2, and it now faces
an emissions standard of e 1 , the firm will
Emission standards specify the technologies, techniques, or
practices that potential polluters must adopt.
C. emit at level e 1 and save (d).
False True
Question 4 options: True
Production and consumption of green goods shifts the
marginal abatement cost curve downward.
Question 5 options:
In order for a property rights approach to produce an
efficient level of environmental pollution the following
conditions must be met:
Question 6 options: A. property rights must be well defined, enforceable and transferable. B. there must be a system for efficient negotiation about property rights to be negotiated. C. there must be a set of markets for environmental assets.
suggest(s) that in the presence of an externality
bargaining can achieve the socially efficient equilibrium
regardless of the initial allocation of property rights.
Question 7 options: A. Liability laws
Moral considerations are often a part of the criteria for
evaluating public policy. Which of the following is not a
moral consideration regarding environmental policy?
Question 8 options: A. Polluters should not be rewarded for terminating environmentally damaging behavior. False True D. all of the above. B. The Coase theorem
If an emission standard is set to the left of the socially
efficient point of emissions, the result will be a socially
inefficient level of pollution and will be greater
than.
Question 11 options: A. total damages; total abatement costs B. total abatement costs; total damages C. marginal damages; marginal abatement costs
When marginal damages for a pollutant vary by region, time
of day, or season, a(n) will not be socially efficient
but that set the MAC curve equal to each MDC
curve are socially efficient.
Question 12 options: B. ambient standard; uniform standards C. individual standard; uniform standards D. technology-based standard; uniform standards
Refer to the Figure Below. If the damaging firm is emitting at the
uncontrolled emissions level and is required to compensate damaged
firms and individuals, the damaging firm has an incentive to----------
Question 11 options: A. stop emissions entirely.
D. $16,
D. marginal abatement costs; marginal damages A. uniform standard; individual standards C. reduce emission to e*, where marginal damages are equal to marginal abatement costs. B. reduce emissions until total abatement costs are equal to total damages.
When marginal damages for a pollutant vary by region, time
of day, or season, a uniform standard will not be socially
efficient but individual standards that equate the MAC to
each MDC are socially efficient.
Question 13 options:
The equimarginal principle states that in order to get the
greatest reductions in emissions for a given
abatement cost, all firms should emit at a point that offers
the same marginal abatement cost for each firm.
Question 14 options:
The ambient quality of the water at various points
downstream of a source of pollution depends on the
quantity of emissions only.
Question 15 options: True
Under the burden is on the to make the
right decision about what technology to use.
Question 16 options: A. technology-forcing standards; pollution control industry B. technology-based standards; polluting firms True A. total; total False C. technology-based standards; public regulatory authority
A centralized policy requires that -----------------
Question 20 options: The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the. Question 21 options: A. the level of abatement that equates MAC and MDC B. level of emissions that maximizes total abatement cost C. the level of emissions that minimizes total abatement cost
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Goods that give the same level of pleasure as ordinary
goods but that involve less environmental damage in either
their production, use or disposal are known as.
Question 22 options: A. a controlling administrative agency be responsible for determining what is to be done. D. the level of emissions that equates MAC and MDC A. generic goods C. green goods B. luxury goods
