Environmental Economics 8th Edition Field Test Bank

Environmental Economics 8th Edition Field Test Bank

richard@qwconsultancy.com

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Chapter 01 - What Is Environmental Economics?

Chapter 01 What Is Environmental Economics?

Multiple Choice Questions 1. A(n) ________ in the economic world is something that leads people to channel their production and consumption efforts in a specific direction.

A. moral obligation B. economic incentive C. property right D. ethical motive Difficulty: Easy.

2. Any economic system will produce destructive environmental impacts if the ________ within the system are not structured to avoid them.

A. ethics B. prices C. property rights D. incentives Difficulty: Easy.

3. An economy that has the ability to allow the level of people's well-being to rise or at least remain constant over time is ________.

A. sustainable B. equitable C. self-perpetuating D. efficient Difficulty: Easy

4. People make the decision to pollute or not based on ________.

A. incentives B. social institutions C. economic institutions D. all of the above Difficulty: Easy

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Chapter 01 - What Is Environmental Economics?

5. _______ organizations are more likely to respond to incentives that encourage pollution.

A. For profit B. Not for profit C. Government D. All organizations are equally likely polluters Difficulty: Easy

6. Positive economics is the study of _____________.

A. what will be B. what is C. beneficial economic outcomes D. economic outcomes that are most likely Difficulty: Easy.

7. ___________ would include a study of what the economic penalties for water pollution should be.

A. Normative economics B. Legal economics C. Judicial economics D. Market economics Difficulty: Easy.

8. _______ organizations are more likely to respond to incentives that discourage pollution.

A. For profit B. Not for profit C. Government D. All of the above Difficulty: Easy.

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Chapter 01 - What Is Environmental Economics?

9. The economic approach to issues of the environment can be directly contrasted with the ________, while the former relies on analytic models and incentives to explain environmental quality the latter interprets environmental degradation as a result of _______.

A. analytic approach; negative externality B. direct approach; indirect policy C. moral approach; unethical behavior D. positive approach; opportunity cost Difficulty: Moderate

10. Pollution control costs today probably equate to A. 1% to 2% of US GDP. B. 20-25% of the US GDP. C. the state of Iowa’s domestic production..

D. the amount spent on US healthcare..

Difficulty: Easy

11. The technical name for the PAYT (pay as you throw) waste disposal program implemented in southern Maine communities, that charged a set price for each bag of trash is ____________.

A. municipal incentive B. ineffective policy C. flat fee D. unit pricing Difficulty: Easy.

12. Command and control policies refer to A. communist government approaches to pollution control.

B. regulations and laws that directly/indirectly specify pollution control technology.

C. tax and spend pollution policy.

D. regulation of pollution by the US military.

Difficulty: Easy

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Chapter 01 - What Is Environmental Economics?

13. Examples of incentive based programs include all but ______________.

A. emissions charges B. emissions taxes C. command and control programs D. market-based trading programs Difficulty: Moderate

14. Perverse incentives__________________.

A. are financial incentives aimed at minors B. are incentives that only affect those who do not pollute C. are flat fee incentives that disproportionately affect the poor D. work against the overall objectives of a policy Difficulty: Easy.

15. Which of the following environmental policy issues would be considered a macroeconomic concern?

A. Potential tradeoffs between environmental protection and GDP growth B. Wage rates in envirotech industries C. Federal policy that regulates the oil industry D. Federal policy that regulates the energy industry Difficulty: Moderate.

16. Environmental policies have triggered all of the following macroeconomic concerns except: A. stricter environmental policies retard economic growth B. stricter environmental policies are associated with socialism C. stricter environmental policies reduce employment D. higher economic growth rates are associated with environmental degradation Difficulty: Moderate

17. While the private sector may judge the effectiveness of environmental policy through the analysis of its effect on their_____________, the public sector judges the impact of environmental policy through __________________ .

A. employees; elections B. benefit-cost analysis; non-profit statement C. advertising; congress D. profit-and-loss statement; benefit-cost analysis Difficulty: Moderate

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Chapter 01 - What Is Environmental Economics?

18. Benefit-cost studies are often associated with political struggles with environmental groups typically emphasizing A. democratic principles.

B. the benefits of environmental programs and policies.

C. the reduced costs associated with environmental programs and policies.

D. the electability of politicians who are pro-environment.

Difficulty: Moderate

19. The benefits of environmental improvement are typically_____________.

A. easy to evaluate, but costs are not B. accrued to individuals and not society C. nonmarket in nature D. openly traded in the market Difficulty: Moderate

20. Globalization is a term used to refer to the changes taking place in the world economy, including all of the following except: A. trade among nations.

B. multinational firms and conglomerates.

C. privatization of economic institutions.

D. all of the above.

Difficulty: Easy

21. Many environmental issues are local or regional; however, some are international or global in scope. An example of a global environmental issue is ________________.

A. destruction of the stratospheric zone B. greenhouse gases C. global warming D. all of the above Difficulty: Easy

22. The fact that environmental policy is subject to politics means_____________.

A. efficiency issues must be ignored B. economists must work to increase voter turnout C. economists must deal with distribution questions D. environmental economics has little influence on which policy is implemented Difficulty: Moderate

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Chapter 01 - What Is Environmental Economics?

23. One of the most persuasive arguments that the profit motive is not solely the cause of pollution is _____________.

A. the success of not-for-profit envirotech companies B. the environmental destruction experienced in countries with Communist regimes C. the stock value of solar energy firms D. the popularity of environmentally friendly household cleaners Difficulty: Moderate

24. Environmental economics is the application of the principles of economics to the study of the use of environmental resources. As such, it draws mostly from the field of ____________.

A. microeconomics B. environmental science C. operations research and supply chain management D. macroeconomics Difficulty: Easy

25. Economics is the study of how and why individuals and groups make decisions about the use and distribution of _______________.

A. money B. time C. human and non-human resources D. capital Difficulty: Easy

26. All of the following are difficulties with relying on moral reawakening to combat pollution control problems, except: A. moral rebuilding takes a long time.

B. the separation of church and state prevents moral influence in policy.

C. pollution problems compete for resources with other moral issues (poverty, housing, etc.).

D. people do not pollute because they are morally underdeveloped.

Difficulty: Moderate

27. In 2005, US expenditures to control pollution cost approximately $130 billion, causing former director of the EPA, William Reilly to state A. “at this level of expenditure, there’s a very large obligation to get it right.”

B. “the US can no longer afford pollution control.”

C. “private firms that pollute must reimburse the public for these expenses.”

D. “the mission of the EPA is to reduce the cost of pollution control.”

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Chapter 01 - What Is Environmental Economics?

Difficulty: Easy

28. Microeconomic topics and studies would include A. changes in GDP. B. rates of inflation.

C. wage rates in the energy industry.

D. the unemployment rate.

Difficulty: Easy

29. A cost effective policy regarding CO2 emissions would ensure A. the highest benefit cost ratio.

B. the largest emission reduction for the resources spent.

C. the greatest amount of utility per capita.

D. that each pollution source reduced their emissions by the same percentage amount.

Difficulty: Moderate

30. Pollution control policies are of special importance to underdeveloped countries. Many have embraced ___________ policy approaches along with heavy reliance on ____________.

A. market based; US regulatory leadership B. international trade; renewable energy sources C. international; the legal system D. command and control; voluntary pollution control Difficulty: Moderate

31. Emissions charges are A. also called emissions taxes B. a form of command-and-control policy C. the same as fines for pollution D. all the above

32. The inverted-U model, comparing GDP per capita to environmental degradation, shows greatest environmental degradation occurring with A. pre-industrial economies B. industrial economies C. post-industrial economies D. none of the above

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Chapter 01 - What Is Environmental Economics?

33. The influence of economists on environmental issues over the last decade has A. increased B. decreased C. not changed D. cannot be determined

34. Economics is a study of A. people’s behavior B. resource scarcity C. decision making D. all the above

35. Economists believe people pollute because A. people don’t care B. people have too many options for their time C. governments are filled with corruption D. pollution is the cheapest waste disposal method of waste products

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Chapter 02 – The Economy and the Environment

Chapter 02 The Economy and the Environment Multiple Choice Questions 1. The trade-off that exists between harvesting as much as possible of a renewable resource today versus waiting for the future exemplifies the ________ of many natural resource management issues.

A. sustainability B. intertemporal dimension C. short-run impact D. efficiency Difficulty: Easy

2. When a new production technology is invented that results in production of smaller amounts of residuals per unit of output produced, this is called reducing the ________.

A. damages from production B. intensity of pollution C. residuals from production D. residuals intensity of production Difficulty: Easy

3. The residuals from production can be reduced by ________.

A. shifting the composition of output towards low-residual items B. preventing pollution by reducing the energy inputs required to produce each unit of output C. reducing the residuals intensity of production D. all of the choices are correct Difficulty: Moderate

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Chapter 02 – The Economy and the Environment

4. An accidental oil spill is an example of a(n) ________ emission while municipal treated wastewater is an example of a(n) ________ emission.

A. continuous; episodic B. global; local C. point source; nonpoint source D. episodic; continuous Difficulty: Easy

5. The study of nature in its role as a provider of raw materials is called ________.

A. natural resource economics B. natural economics C. environmental economics D. all of the choices are correct Difficulty: Easy

6. ________ economics is an example of a subdivision of natural resource economics.

A. Agricultural B. Energy C. Mineral D. All of the choices are correct Difficulty: Moderate

7. Nonrenewable resources are those for which there is no process of ________.

A. substitution B. replenishment C. sustainability D. assimilation Difficulty: Easy

8. Both renewable and nonrenewable resources have ________ trade-offs.

A. objectivity B. intertemporal C. relevance D. stock Difficulty: Easy

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Chapter 02 – The Economy and the Environment

9. One of the theoretical ideas of natural resource economics is that the earth’s ___________ is a natural resource under threat of depletion.

A. sun B. population C. sustainability D. assimilative capacity Difficulty: Easy

10. Although the dividing line between the two is blurring generally speaking, _______ is concerned with resource extraction and __________ is concerned with environmental degradation.

A. production economics; consumption economics B. environmental economics; natural resource economics C. natural resource economics; environmental economics D. consumption economics; production economics Difficulty: Easy

11. In the figure above, (a) represents ____________.

A. the extraction of resources from nature B. natural resource economics C. the consumption of goods and services D. the role of government Difficulty: Easy

12. In the long run, residuals discharged by producers plus residuals discharged by consumers must be equal to the materials and energy extracted from the natural environment. The fundamental balance equation states that this is also equal to the _________________.

A. output of goods and services minus consumer recyclables B. output of goods and services plus production residuals minus recyclables C. output of residuals minus consumer recyclables plus producer surplus D. benefits plus costs Difficulty: Moderate

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Chapter 02 – The Economy and the Environment

13. According to the fundamental balance equation, how can M, raw materials and energy extracted from the environment, be reduced?

A. Reduce G, the amount of goods produced B. Reduce Rp, residuals from producers C. Increase (Rrp + Rrc), recyclables from both consumers and producers D. All of the above are a method of reducing M Difficulty: Moderate

14. In the figure above, the curve in panel (a) represents ____________.

A. a production possibilities curve B. a trade-off between the production of market goods and environmental quality C. combinations of outcomes given a fixed endowment and technology D. all of the above Difficulty: Easy

15. In the figure above, panel (b) represents __________________.

A. intertemporal linkage between production decisions today and production ability tomorrow B. a change in technology allowing for increased production C. the inevitable consequences of air pollution D. the inevitable consequences of improved air quality Difficulty: Easy

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Chapter 02 – The Economy and the Environment

16. ___________ refers to the quantity of pollutants in the environment.

A. Source B. Effluent C. (Rrp + Rrc) D. Ambient quality Difficulty: Easy

17. _____________ is the common term for negative impacts produced by environmental pollution on people in the form of health effects and visual degradation as well as negative impacts on the ecosystem.

A. Disruption B. Damages C. Effluent D. Emissions Difficulty: Easy

18. Although often used interchangeably, _______ broadly describes residuals that are placed in the environment and __________ is typically used to describe residuals placed in water.

A. pollutant; effluent B. effluent; emissions C. emissions; effluent D. pollutant; emission Difficulty: Easy

19. ____________ is an environmental media.

A. Water B. Land C. Air D. all of the above Difficulty: Easy

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Chapter 02 – The Economy and the Environment

20. For a given amount of residuals, when we reduce the amount that is emitted into one environmental media, ___________________.

A. the ambient quality of all surrounding media increases B. the amounts going into other media must increase C. production of goods and services must decrease D. it is impossible to specifically state what happens to other environmental media Difficulty: Moderate

21. When emissions are mixed and not flowing from a single source, the problem of enforcement to maintain ambient quality is ______________.

A. impossible B. straightforward C. much more complex D. all of the above Difficulty: Easy

22. A living resource can be non-renewable.

A. false; all living resources are renewable B. true; if the living resource is rare C. true; if the rate of harvest exceeds the growth rate of the resource’s stock D. false; only non-living resources are non-renewable Difficulty: Easy

23. Continued extraction of a non-renewable resource can be sustainable over time if managed properly.

A. False; all non-renewable resources have a 5 year limit for extraction.

B. True; by definition non-renewable resources will never deplete.

C. True; with continued increases in technology non-renewable resources can last indefinitely.

D. False; non-renewable resources will eventually deplete.

Difficulty: Easy

24. A classic example of a non-cumulative pollutant is _____________.

A. loud music B. acid rain C. methane gas D. mercury Difficulty: Easy

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Chapter 02 – The Economy and the Environment

25. Estimating damages from cumulative pollutants is complicated because A. there is a lack of cause and effect associated with the current emissions and total damages.

B. the intertemporal dimension makes it more difficult to focus on the damages associated with today’s emissions.

C. people typically discount the effects of future damage.

D. all of the above.

Difficulty: Moderate

26. Point-source pollutants A. are known for causing greater environmental damages.

B. typically have international damage components C. have a well-defined point of discharge.

D. are typically more difficult to trace to the source of pollution.

Difficulty: Easy

27. It is more difficult to develop and administer control policies for _________ than it is for _____________.

A. local pollutants; regional and global pollutants B. air pollution; water pollution C. point source pollutants; non-point source pollutants D. non-point source pollutants; point source pollutants Difficulty: Easy

28. An example of environmental damage that is not related to emissions is ___________.

A. strip mining B. logging C. the conversion of land to housing D. all of the above Difficulty: Easy

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Chapter 02 – The Economy and the Environment

29. The policy challenge for continuous emissions is to manage ___________.

A. the probability of accidental discharges B. people who frequently cause accidents C. the rate of the discharges D. the likelihood that continuous discharges are damaging Difficulty: Easy

30. The policy challenge for episodic emissions is to manage ____________.

A. the probability of accidental discharges B. the likelihood that continuous discharges are damaging C. people who frequently cause accidents D. air pollution in developing nations Difficulty: Easy

31. Using a green Gross Domestic Product measure, an increase in pollution would A. increase green GDP B. decrease green GDP C. not be included in green GDP D. gives the same green GDP value as traditional GDP

32. Using a green Gross Domestic Product measure, an increase in spending on solar panels would A. increase green GDP B. decrease green GDP C. not be included in green GDP D. give the same green GDP value as traditional GDP

33. In a PPC figure sustainability is illustrated when A. the PPC does not shift toward the origin B. the economy reduces market goods and increases environmental quality C. the economy reduced environmental quality and increases market goods D. the PPC shifts toward the origin

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Chapter 02 – The Economy and the Environment

34. Sustainability A. gives equivalent emphasis to the short run and the long run B. gives the short run greater emphasis than the long run C. gives the long run greater emphasis than the short run D. is not concerned about intertemporal decisions

35. Risk management A. examines the likelihood or uncertainty of accidents B. examines the liability of accidents C. examines the technical failures of accidents D. examines the balance sheets of accidents

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Chapter 03 - Benefits and Costs, Supply and Demand

Chapter 03 Benefits and Costs, Supply and Demand

Multiple Choice Questions 1. In the following figure, the marginal willingness to pay for the 10th unit of the good is ________.

A. $12 B. $20 C. $160 D. $200

Difficulty: Easy.

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Chapter 03 - Benefits and Costs, Supply and Demand

2. In the following figure, the total willingness to pay for the 10th unit of the good is _______.

A. $12 B. $20 C. $160 D. $200

Difficulty: Easy

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Chapter 03 - Benefits and Costs, Supply and Demand

3. In the following figure the marginal cost of producing the 500th unit of output is ________.

A. $500 B. $550 C. $150,000 D. $212,500

Difficulty: Easy

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Chapter 03 - Benefits and Costs, Supply and Demand

4. In the following figure the total cost of producing the 500th unit of output is ________.

A. $550 B. $150,000 C. $212,500 D. $275,000

Difficulty: Easy

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Chapter 03 - Benefits and Costs, Supply and Demand

5. The following figure shows the impact of technological change on the marginal cost of producing a certain good. Producing Q* units with the new technology reduces total cost by an amount equal to ________.

A. area a B. area b C. area c D. areas a + b

Difficulty: Easy

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Chapter 03 - Benefits and Costs, Supply and Demand

6. The following figure shows the impact of technological change on the marginal cost of producing a certain good. With MC1 the total cost of producing Q* units is equal to _______.

A. areas a + b + c B. areas b + c C. area b D. area c

Difficulty: Easy

7. One criterion for evaluating environmental policies is whether or not they generate ________ for individuals, firms and industries to engage in ________.

A. disincentives; expansion activities B. incentives; expansion activities C. disincentives; abatement activities D. incentives; R&D activities Difficulty: Easy

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Chapter 03 - Benefits and Costs, Supply and Demand

8. The value of a good or service is measured by _______________.

A. the willingness to pay B. the sacrifice a person experiences in terms of other goods C. the sacrifice a consumer experiences in generalized purchasing power D. all of the above Difficulty: Easy

9. The determination of how much an individual is willing to pay for a good or service is comprised of both _________ and ________________.

A. current environmental quality; potential environmental impact B. individual values; ability to pay C. collective values; unemployment rate D. societal values; consumer price index Difficulty: Easy

10. Willingness to pay is graphed __________________.

A. as a curve that slopes downward as quantity increases B. as a curve that slopes upward as quantity increases C. as a horizontal line D. as a stepwise function that cannot be translated into a curve Difficulty: Easy

11. The notion of diminishing willingness to pay reveals that as____________.

A. units consumed increases, willingness to pay for additional units increases B. units consumed increases, willingness to pay for additional units stays the same C. units consumed increases, willingness to pay for additional units decreases D. ability to pay increases, the number of units consumed increases Difficulty: Easy

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Chapter 03 - Benefits and Costs, Supply and Demand

12. Marginal willingness to pay ____________.

A. is the consumer’s additional willingness to pay for one more unit of the good B. is the consumer’s additional ability to pay for one more unit of the good C. is the consumer’s ability to pay for consumption of all units of the good D. is the consumer’s willingness to pay for consumption of all units of the good Difficulty: Easy

13. As long as marginal willingness is _________, total willingness will _________.

A. declining; stay the same B. increasing; decrease C. positive; increase D. decreasing; decrease Difficulty: Moderate

14. Individual demand curves reflect _______________.

A. a willingness to pay B. altruism toward friends and relatives C. a sense of social responsibility D. all of the above Difficulty: Moderate

15. Aggregate demand curves are _________________.

A. not of interest in environmental economics because it is a microeconomic field B. unrelated to individual demand curves C. a summation of individual demand curves D. not related to individual or aggregate willingness to pay Difficulty: Moderate

16. The benefit a consumer acquires from consuming a unit of a good is equal to ________.

A. the willingness to pay minus the cost of production B. the price that a consumer is willing to pay C. the profit associated with the good D. the area above the demand curve Difficulty: Moderate

17. Total willingness to pay ____________.

A. is the consumer’s additional willingness to pay for one more unit of the good B. is the consumer’s additional ability to pay for one more unit of the good C. is the consumer’s ability to pay for consumption of all units of the good D. is the consumer’s willingness to pay for consumption of all units of the good 3-8 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 03 - Benefits and Costs, Supply and Demand Difficulty: Easy

18. All of the following are difficulties with using demand curves to estimate environmental benefits, except A. demand curves are constructed based on ability to pay.

B. consumers are sometimes unaware of the benefits of environmental quality.

C. downward sloping demand curves inaccurately imply declining benefits.

D. benefits are often difficult to measure when it concerns environmental questions.

Difficulty: Moderate

19. Opportunity cost _______________.

A. is represented by the area under the marginal cost curve B. is an upward sloping curve that intersects with the demand curve C. represents the maximum value of other outputs that could have been produced with the same resources D. all of the above Difficulty: Easy

20. Private costs are ____________, while social costs are ____________.

A. costs experienced by the consumer making the decision; all of the costs of the action B. costs experience by the private sector; costs experience by the public sector C. costs that are charged by the private sector; costs that are charged by the public sector D. all of the costs of a transaction including social costs; only the costs represent damage to the environment Difficulty: Easy

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Chapter 03 - Benefits and Costs, Supply and Demand

21. The marginal cost curve is affected by _____.

A. time B. the price of inputs C. technology D. all of the above Difficulty: Easy

22. One important characteristic of all marginal cost curves is that ________.

A. they all intersect the Y axis B. although they may initially decline, they eventually increase C. they all eventually decline D. they are stepwise functions with lumpy investment features Difficulty: Easy

22. The marginal cost curve of a firm ________.

A. represents the firm’s production function B. represents the firm’s supply curve C. represents the industry supply curve D. none of the above Difficulty: Easy

23. Technological progress _______________.

A. results in a downward shift of the marginal cost curve B. results in an upward shift of the marginal cost curve C. results in an upward shift of the willingness to pay curve D. results in a downward shift of the willingness to pay curve Difficulty: Easy

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Chapter 03 - Benefits and Costs, Supply and Demand

Table 3.0 Consumption Level (cups/day) 0 1 2 3 4 5 6

Coffee Consumption Marginal Willingness to Pay $5.50 $4.50 $4.00 $3.75 $3.50 $1.25 $1.00

24. Refer to Table 3.0. At a price of $3.00, how many cups of coffee would this individual consume?

A. 2 B. 6 C. 4 D. There is not enough information in the table to determine the answer.

Difficulty: Easy

25. Refer to Table 3.0. What is the total willingness to pay for 4 cups of coffee?

A. $3.50 B. $14.00 C. $21.25 D. $15.75 Difficulty: Moderate

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Chapter 03 - Benefits and Costs, Supply and Demand

26. Refer to Table 3.0. What are the total benefits of consuming 3 cups of coffee?

A. $3.75 B. $17.75 C. $ 5.75 D. Indeterminate. The table does allow the calculation of benefits.

Difficulty: Moderate

Table 3.1

Production Schedule for Widgets

Production Level (Widgets/Week) 0 20 38 50 62 80 100

Plant A Marginal Cost

Plant B Marginal Cost

$ -$7.50 $9.00 $12.00 $18.00 $26.00 $36.00

$ -$4.50 $4.00 $8.00 $9.00 $12.00 $15.00

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Chapter 03 - Benefits and Costs, Supply and Demand

27. Refer to Table 3.1. According to the equimarginal principle, in order to minimize the cost of producing 100 units, how would we distribute production between plants A and B? A. 0 units at plant A; 100 units at plant B B. 20 units at plant A; 80 units at plant B C. 38 units at plant A; 62 units at plant B D. 50 units at plan A; 50 units at plant B Difficulty: Moderate

Table 3.2 Marginal Cost Functions of an Industry with 4 Firms Marginal Costs $1.00 $2.00 $3.00 $4.00 $5.00

Firm A Quantity 0 5 8 10 12

Firm B Quantity 0 0 6 8 10

Firm C Quantity 0 0 1 6 7

Firm D Quantity 0 3 8 24 28

28. Refer to Table 3.2. At a market price of $4.00, what is industry supply?

A. 0 B. 48 units C. $ 192.00 D. Indeterminate. The table does reveal aggregate supply.

Difficulty: Moderate

Price ($) 10 12 16

Marginal Willingness to Pay In a 3 Person Market A B 10 6 6 2 4 0

C 8 5 3

29. When market price is $16, aggregate demand is __________.

A. 7 units B. 44 units C. $112 D. indeterminate. The table does reveal aggregate demand.

Difficulty: Easy

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Chapter 03 - Benefits and Costs, Supply and Demand

30. Total costs are found by ________.

A. the intersection of the marginal cost and marginal benefits curve B. the area under the marginal willingness to pay curve C. multiplying the marginal cost by the number of units D. the sum of the marginal cost for each unit Difficulty: Easy

31. When technological changes are adopted, marginal abatement cost usually A. increases B. decreases C. not changed D. cannot be determined

32. The equimarginal principle addresses A. equality B. efficiency C. willingness to pay D. aggregate benefits

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Chapter 03 - Benefits and Costs, Supply and Demand

Refer to the following table for Dina’s marginal willingness-to-pay for scooter rentals. (approximately 10 minutes per rental). Note the MWTP to go from 0 to 5 rentals per week is $10.

Rentals per week Marginal Willingness to Pay 0 5 $10 10 $9 15 $7 20 $5 33. Dina’s total willingness to pay for 15 rides is A. 7 B. 10 C. 16 D. 26

34. If the price for a 10-ride pass is $6, how many rides would Dina desire?

A. 20 B. 15 C. 5 D. zero

35. Dina’s willingness to pay for a scooter rental depends on her A. alternatives B. ability to pay C. wealth D. all the above

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Chapter 04 - Economic Efficiency and Markets

Chapter 04 Markets, Externalities, and Public Goods

Multiple Choice Questions Figure 4.1 Output 0 50 100 150 200

MWTP 300 275 250 225 200

MC 52 150 250 350 450

1. Suppose for a given market that the MWTP and MC curves are represented in Figure 4.1.

Assuming all market and non-market values are incorporated into the data, the MWTP at the socially efficient level of output is equal to ________.

A. 100 units B. 140 units C. $230 D. $250 Difficulty: Easy

3. A small coastal community with the power to control access to its scallop fishery is an example of ________.

A. common property rights B. private property rights C. an open access resource D. a positive externality Difficulty: Easy

4. A common pasture on which anyone is allowed to freely graze sheep or cattle is an example of ________.

A. private property rights B. an open access resource C. common property rights D. community property rights Difficulty: Easy

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Chapter 04 - Economic Efficiency and Markets

Figure 4.2

5. In the Figure 4.2 the net social value is equal to ________.

A. area c B. areas a + b - c C. areas a + b + c D. areas a + b Difficulty: Easy

6. ________ cause private and social marginal cost curves to diverge while ________ cause private demand and social marginal WTP to diverge.

A. External benefits; external costs B. External costs; external benefits C. Market failures; public goods D. Taxes; subsidies Difficulty: Moderate

7. In the case of an open access resource, a(n) ________ takes place due to a lack of ________.

A. externality; regulation B. free rider problem; ethical behavior C. market failure; property rights D. external benefit; rivalry in consumption Difficulty: Easy

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Chapter 04 - Economic Efficiency and Markets

8. When production results in environmental degradation, private firms do not take the ________ into consideration when making their output decisions resulting in ________.

A. external costs; a market failure B. market failure; an externality C. marginal costs; pollution D. market failure; pollution Difficulty: Easy

Figure 4.3

9. In the Figure 4.3, the socially efficient level of output is equal to ________.

A. q* B. qm C. p* D. None of the choices are correct.

Difficulty: Easy

Table 4.4 Quantity Q1 Q2 Q3 Q4 Q5

Private MWTP 12 11 8 5 4

External Benefits 5 5 4 4 4

Social MWTP 17 16 12 9 8

Marginal Cost 4 5 8 9 10

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Chapter 04 - Economic Efficiency and Markets

10. In Table 4.4, social MWTP equals private MWTP plus external benefits from production.

In this market, the socially efficient level of output is ________.

A. Q2 B. Q3 C. Q4 D. None of the choices are correct.

Difficulty: Moderate

11. The ________ level of pollution can be negotiated privately based on property rights when only a few parties are involved and the source, amount, and type of pollution is clearly identifiable.

A. cost-effective B. zero-emissions C. fair D. socially efficient Difficulty: Easy.

12. When the rate of output is at the socially efficient level, _______________.

A. net social value which is equal to total WTP minus total costs is as large as possible B. the total willingness to pay is as large as possible C. profit is a large as possible D. output is as large as possible Difficulty: Easy

13. If social values are not reflected in the market values determined by the market demand and market supply curves, the competitive market equilibrium output will ______________.

A. always be the socially efficient level of output B. not be the socially efficient level of output C. always be higher than the socially efficient level of output D. always be lower than the socially efficient level of output Difficulty: Easy

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Chapter 04 - Economic Efficiency and Markets

14. External costs can drive a wedge between the _______ and the _________ resulting in a market failure.

A. private marginal WTP curve; social marginal WTP curve B. market demand curve; social marginal WTP curve C. market supply curve; social marginal costs D. None of the choices are correct.

Difficulty: Easy

15. External benefits can drive a wedge between the _______ and the _______ resulting in a market failure.

A. private marginal WTP curve; social marginal WTP curve B. market demand curve; social marginal WTP curve C. market supply curve; social marginal costs D. None of the choices are correct.

Difficulty: Easy

16. In the case of open access resources and public goods, the competitive market output level will be ___________.

A. equal to the socially efficient level of output B. lower than the socially efficient level of output C. unequal to the socially efficient level of output D. higher than the socially efficient level of output Difficulty: Easy

17. Each of the following is a cause of market failure, except ______________.

A. external costs B. public goods C. external benefits D. time Difficulty: Easy

18. When you enjoy the view of your next-door neighbor's prize-winning garden, this is an example of ________.

A. common property rights B. a positive externality C. a negative externality D. a public good Difficulty: Easy

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Chapter 04 - Economic Efficiency and Markets

19. When we drive our cars, we get the ________ of transportation services, while others experience the detrimental effects such as pollution and congestion which environmental economists refer to as a(n) ________.

A. positive externality; negative externality B. direct benefit; opportunity cost C. direct benefit; negative externality D. positive externality; opportunity cost Difficulty: Easy

20. The number of miles a household drives its vehicles each year is determined by its ________ of driving.

A. opportunity cost B. private cost C. social cost D. external cost Difficulty: Easy

Figure 4.5 Individual Demand for Lowering Indoor Carbon Monoxide in $/yr.

Three Students Share a Home

Student A MWTP Student B MWTP Student C MWTP Marginal Cost of Cleanup

50 ppm 45 0 5

60 ppm 55 0 10

70 ppm 70 10 15

80 ppm 85 35 20

90 ppm 110 60 30

240

150

95

65

50

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Chapter 04 - Economic Efficiency and Markets

21. Refer to Figure 4.5. If the group living in the house consists of Students A, B, and C, the aggregate willingness to pay to reduce CO concentration to 80 ppm is ______.

A. $65/yr B. $140/yr C. $85/yr D. indeterminate Difficulty: Moderate

22. Refer to Figure 4.5. If the group living in the house consists of Students A, B, and C, the socially optimal level of CO concentrations is _________.

A. $70/yr B. 70 ppm C. $95/yr D. 50 ppm Difficulty: Moderate

23. Refer to Figure 4.5. If the group living in the house is reduced to Students A and C, aggregate willingness to pay for most CO levels _________.

A. increases B. declines C. remains unchanged D. is unpredictable Difficulty: Moderate

24. By definition, a free rider is a person _______________.

A. who underpays for a public good relative to the benefits that they receive B. who refuses to pay for a public good because they receive no value from it C. who contributes less than others toward payment of a public good D. who pays less than the marginal cost of producing a public good Difficulty: Moderate

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Chapter 04 - Economic Efficiency and Markets

25. Due to free riding, public goods are typically ____________.

A. under supplied B. supplied by private firms who can restrict access C. taxed D. over supplied Difficulty: Easy

Figure 4.6

26. Refer to Figure 4.6. At quantities lower than the socially efficient level, __________.

A. MWTP is higher than the marginal cost of production, the good is under supplied B. quantity demanded is greater than the willingness to supply, the good is over supplied C. MWTP is less than willingness to supply, the good will not be produced D. the graph does not depict quantities that are lower than the socially efficient level Difficulty: Easy

Figure 4.7 Willingness to pay for a Public Park

Hectares of Park 1 2 3 4 5

Consumer Group 1 MWTP $6 $4 $2 $0 $0

Consumer Group 2 MWTP $6 $5 $4 $3 $2

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Chapter 04 - Economic Efficiency and Markets

27. Refer to Figure 4.7. If the marginal cost to provide the park is $3/hectare, __________.

A. the socially efficient size of the park is 4 hectares B. the socially efficient size of the park is 3 hectares C. there is no socially efficient solution D. None of the above are true.

Difficulty: Easy

28. Refer to Figure 4.7. As MWTP _______, total willingness to pay _______.

A. increases; increases B. declines; declines C. declines; increases D. The table does yield enough information.

Difficulty: Easy

29. The central idea of economic efficiency is that ___________________.

A. all people must value the production of the goods that society produces B. there is a balance between aggregate marginal willingness to pay and the marginal costs of production C. the marginal willingness to pay of all consumers is equal to the total cost of production D. production is maximized Difficulty: Easy

30. In judging whether people from Chicago can justifiably claim that they have been damaged by species endangerment in Africa, the presence or absence of ___________ is the economic index used to validate that claim.

A. public goods B. social costs C. willingness to pay D. market efficiency Difficulty: Easy

31. Equity means A. equality B. maximum net benefits C. fairness D. equilibrium 32. Efficiency means A. equality B. maximum net benefits C. fairness D. equilibrium 4-9 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 04 - Economic Efficiency and Markets

33. If society had to pay external costs plus production costs, the supply of goods would A. increase B. decrease C. not change D. cannot be determined

34. An example of an external cost of driving automobiles is A. fuel or energy for the vehicle B. flat tire replacement C. insurance and registration D. road congestion

35. Market failure A. is a problem only in the United States B. does not occur in socialist economies C. means a good is free or has a price of zero D. can result from externalities

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Chapter 05 - The Economics of Environmental Quality

Chapter 05 The Economics of Environmental Quality

Multiple Choice Questions 1. Determining a target level of environmental quality is an example of _______.

A. positive policy analysis B. positive economics C. normative policy analysis D. benefit-cost analysis Difficulty: Easy

2. For certain pollutants with a (n) _______, emissions or ambient quality up to a certain level cause _________ damages.

A. threshold; no B. ambient concentration; no C. threshold; severe D. ambient concentration; severe Difficulty: Easy

3. A marginal damage function that becomes vertical at high levels of emissions represents _______.

A. a threshold B. an infinite ambient concentration C. a toxic pollutant D. an environmental catastrophe Difficulty: Easy

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Chapter 05 - The Economics of Environmental Quality

4. A(n) ________ shows how damages are related to the concentration of a waste product contained in the ambient environment.

A. emission damage function B. ambient damage function C. marginal damage function D. ambient concentration Difficulty: Easy

Figure 5.1

5. Refer to Figure 5.1. Total damages associated with damage curve MD1 at an emissions level of e1 is _________.

A. $12 B. $28 C. area a D. area b Difficulty: Easy

6. Refer to Figure 5.1. Total damages associated with damage curve MD2 at an emissions level of e1 is _________.

A. $28 B. area a C. area b D. area a + b Difficulty: Easy

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Chapter 05 - The Economics of Environmental Quality

7. Refer to Figure 5.1. The change in damages associated with a shift from MD1 to MD2 at an emissions level of e1 is _________.

A. $28 - $12 B. area a C. area b D. area a + b Difficulty: Easy

8. For a firm with more than one source of output with differing cost structures, its ________ will be minimized when its ________ are equalized across sources.

A. marginal production costs; production levels B. total production costs; production levels C. total production costs; marginal production costs D. marginal production costs; total production costs Difficulty: Easy

9. For a firm with more than one source of emissions, the ________ states that the total costs of meeting a given abatement target will be minimized when the marginal costs of abatement are ________ across sources.

A. equimarginal principle; equalized B. law of one price; equalized C. equimarginal principle; minimized D. Coase theorem; equalized Difficulty: Easy

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Chapter 05 - The Economics of Environmental Quality

15. Under what circumstances would a firm with more than one source of emissions minimize its total costs of abatement by setting abatement levels equal at each source?

A. This method will always result in the firm minimizing its total abatement costs.

B. When each source has identical marginal cost of production structures.

C. When each source has identical marginal abatement cost structures.

D. When each source has identical marginal damage cost structures.

Difficulty: Moderate

16. Under what circumstances would a firm with more than one source of production minimize its total costs of production by setting production levels equal at each source?

A. This method will always result in the firm minimizing its total production costs.

B. When each source has identical marginal cost of production structures.

C. When each source has identical marginal abatement cost structures.

D. When each source has identical marginal damage cost structures.

Difficulty: Moderate

17. The study of what ought to be such as determining the socially efficient level of emissions is known as _____________.

A. normative economics B. positive economics C. equimarginal principle D. Coase theorem Difficulty: Easy

18. Describing and explaining economic events that have taken place in the real world is known as ___________.

A. normative economics B. positive economics C. equimarginal principle D. Coase theorem Difficulty: Easy

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Chapter 05 - The Economics of Environmental Quality

19. For a single, non-accumulative pollutant, when no threshold exists A. the marginal damage function begins below the origin.

B. release of the pollutant into the environment is safe at very low levels.

C. the marginal damage function begins at the origin.

D. the very first unit of emissions has an impact on the environment.

Difficulty: Easy

20. The height of the marginal damage curve at a particular level of emissions shows A. the amount of accumulated damaging material in the ambient environment.

B. the concentration of damaging material in the ambient environment.

C. the number of people damaged by the emission.

D. how much total damages change if there is a small change in the quantity of emissions.

Difficulty: Easy

21. The least costly way of reducing emissions for a group of polluting sources is depicted by A. adding individual marginal abatement cost curves together to represent one curve B. the aggregate marginal abatement cost function of the group of sources C. a single marginal abatement cost curve that accumulates curves for each individual source D. all of the above Difficulty: Easy

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Chapter 05 - The Economics of Environmental Quality

22. Which Figure above represents a greater total abatement cost than total damage cost at the socially optimal point of emissions?

A. Figure (a) B. Figure (b) C. Figure (c) D. Figures (a), (b) and (c) Difficulty: Easy

23. Which Figure above represents a marginal damages curve with a threshold?

A. Figure (a) B. Figure (b) C. Figure (c) D. Figures (a), (b) and (c) Difficulty: Easy

24. Which Figure above represents a social optimum at e*?

A. Figure (a) B. Figure (b) C. Figure (c) D. Figures (a), (b) and (c) Difficulty: Easy

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Chapter 05 - The Economics of Environmental Quality

25. Which of the above Figures reveals a marginal damage curve that displays a threshold?

A. Figure (a) B. Figure (b) C. Neither Figure (a) nor (b) D. Both Figures (a) and (b) Difficulty: Easy

26. In Figure (b), the change in abatement costs represented by the change in the socially optimal emission level from e1* to e2* can be described as __________.

A. (a+b)–(b+c) B. (a-c) C. (b+c) D. both A. and B Difficulty: Easy

27. Which of the above figures shows a shift in the marginal abatement cost function?

A. Figure (a) B. Figure (b) C. Neither Figure (a) nor (b) Both Figures (a) and (b) Difficulty: Easy

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Chapter 05 - The Economics of Environmental Quality

28. In Figure (a) above, we can see that as the marginal damage curve rises, representing increased damages for every unit of emissions, the socially optimal level of emissions ___________.

A. remains unchanged B. increases C. decreases D. is indeterminate Difficulty: Easy

29. Review the figure above. When enforcement costs are considered, abatement costs _______ and the socially optimal level of emissions ______________ .

A. increase; increases B. increase; decreases C. decrease; increases D. decrease; decreases Difficulty: Easy

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Chapter 05 - The Economics of Environmental Quality

30. Review the table above. Assume that one firm operates both sources and controls emissions. Currently, each source produces 12 tons/wk of emissions. If the firm is required to reduce emissions to a total of 15 tons per week, how should emissions be distributed between the two sources?

A. Source A $6,000/wk; Source B $6,000/wk B. Source A 6 tons/wk; Source B 9 tons/wk C. Source A 4 tons/wk; Source B 8 tons/wk D. Sources A $10,000/wk; Source B $10,000/wk Difficulty: Easy

31. Review the table above. Assume that one firm operates both sources and controls emissions. Currently, each source produces 12 tons/wk. of emissions. If the firm is required to reduce emissions by 3 tons from the current total of 24 tons/wk. (12 tons/wk. from each source), how should the 3 tons emissions reduction be distributed between the two sources?

A. Source A reduces 3 tons; Source B reduces by zero tons B. Source A reduces zero tons; Source B reduces by 3 tons C. Source A reduces 1 ½ tons; Source B reduces 1 ½ tons D. Source A reduces 2 tons; Source B reduces 1 ton 32. A policy that requires all polluters to reduce emissions by 30% is A. equitable B. efficient C. flexible D. none of above 33. To maintain efficiency with an increase in MAC with no change in MD, emissions would need to A. increase B. decrease C. not change D. cannot determine 5-9 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 05 - The Economics of Environmental Quality

34. An efficient level of emissions is reached when A. MD is minimized B. MAC is minimized C. MD = MAC D. when the difference between MD and MAC is maximized 35. Improving environmental quality requires a trade-off between A. non-point source and point-source emissions B. marginal damages and marginal abatement costs C. continuous and episodic emissions D. willingness to pay and ability to pay

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Chapter 06 - Framework of Analysis

Chapter 06 Framework of Analysis Multiple Choice Questions 1. Benefit-cost analysis incorporates ________ valuation of all inputs and outputs related to the project whether or not they are transacted in private markets.

A. market B. private C. social D. non-market Difficulty: Easy

2. Cost effectiveness analysis assumes a single objective and A. estimates the costs of competing alternative approaches to achieving that objective.

B. compares the benefits of that objective and the costs of obtaining that objective.

C. estimates the damage or effect of obtaining that objective on a valued resource.

D. compares it to the effects of other competing objectives.

Difficulty: Easy

3. When it comes to determining the appropriate environmental project to select, the ________ link(s) benefit-cost analysis to our theoretical model of the economics of the environment.

A. equimarginal principle B. socially efficient scale C. social discount rate D. economies of scale Difficulty: Easy

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Chapter 06 - Framework of Analysis

4. The 1980 Comprehensive Environmental Response, Compensation and Liability Act resulted in the US Department of Interior defining the calculation of damages to a valued resource as A. the lost value of the resource.

B. the value of restoring the resource.

C. the value of replacing the resource with another resource.

D. the lesser of the lost value of the resource or the value of restoring the resource.

Difficulty: Easy

5. An environmental program is ________ if the net effect of that policy has proportionally ________ effect on low-income people as on high-income people.

A. proportional; less B. proportional; the same C. proportional; greater D. progressive; the same Difficulty: Easy.

6. An environmental program is ________ if the net effect of that policy has proportionally ________ effect on low-income people as on high-income people.

A. progressive; less B. regressive; greater C. progressive; higher D. progressive; the same Difficulty: Easy

7. An environmental program is ________ if the net effect of that policy has proportionally ________ effect on low-income people as on high-income people.

A. proportional; less B. regressive; greater C. regressive; the same D. regressive; lower Difficulty: Easy

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Chapter 06 - Framework of Analysis

8. Assume two projects with uncertain outcomes have the same expected value. Project A has two similar outcomes with similar probabilities of occurrence while project B has a low probability of a disaster and a high probability of a positive outcome. A________ decision maker would choose Project A. A. risk-neutral B. risk-loving C. risk-averse D. perfectly informed Difficulty: Easy

9. Given the information in the following table, ________ is the most cost-effective way to reduce the phosphorous concentration in the Bay of Quinte.

A. reduction in phosphorus inputs from agricultural runoff B. alum treatment of sediments in the bay C. tertiary treatment at sewage treatment plants D. treatment of wastewater from water treatment plants Difficulty: Easy

10. Benefit-cost analysis has been criticized A. as a means of allowing public agencies to justify ever-larger budgets.

B. because it limits political discussion and decision-making about prospective public projects and programs.

C. as a way of limiting spending on public programs due to the difficulty of measuring benefits relative to costs.

D. all of the above.

Difficulty: Easy

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Chapter 06 - Framework of Analysis

11. The socially efficient scale maximizes the net social benefits from a project because A. consumer preferences as revealed in market prices are maximized where MAC=MD. B. damages are minimized where MAC=MD. C. total abatement costs are less that total damage costs where MAC=MD. D. net social benefits are maximized where MAC = MD. Difficulty: Easy

13. There are two primary types of public environmental programs where benefit-cost analysis is typically done: A. physical projects and regulatory programs.

B. programs initiated by the for profit sector and programs initiated by the not for profit sector.

C. fixed budget and fixed impact projects.

D. net benefit projects and sensitivity analysis projects.

Difficulty: Easy

14. Refer to the figure above. A program that reduces emissions from the uncontrolled level of e1 to emissions level e2 A. reveals total costs equal to area (a+b+c+d).

B. is clearly preferable to e*, where MD=MAC. C. yields negative net benefits because the MD curve lies above the MAC curve.

D. reveals net benefits of (a + b) – (b).

Difficulty: Moderate

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Chapter 06 - Framework of Analysis

15. The choice of a discount rate is influenced by A. time preference.

B. whether the effects cross generations.

C. the rate of inflation.

D. all of the above.

Difficulty: Easy.

16. Vertical equity treats A. people in the same circumstances identically.

B. people in the same circumstances proportionately.

C. people in different circumstances differently.

D. none of the above.

Difficulty: Easy.

17. Horizontal equity treats A. people in the same circumstances identically.

B. people in the same circumstances proportionately.

C. people in different circumstances differently.

D. none of the above.

Difficulty: Easy

Table 1: Benefits and costs of a local environmental impact on a 3-person community Income Reduced Environmental Damages ($/year) Abatement Costs ($/year)

Person A $100,000 $ 80,000 $ 60,000

Person B $100,000 $ 90,000 $ 70,000

Person C $100,000 $ 50,000 $ 30,000

18. The table above represents A. a regressive outcome.

B. a progressive outcome.

C. horizontal equity.

D. vertical equity.

Difficulty: Moderate

19. A cost-effective project is the one that A. achieves a given level of benefits.

B. is the lowest possible cost among all possible project options.

C. achieves the maximum net benefits possible.

D. both A and B. Difficulty: Moderate

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Chapter 06 - Framework of Analysis

20. An environmental project requires investments of $100,000 in year 1, year 2, and year 3 and yields benefits of $20,000 in year 1; $45,000 in year 2 and $150,000 in year 3. What is the net present value of the project at a discount rate of 4% (rounded to the nearest dollar)?

A. +$83,698.

B. -$84,242.

C. - $96,272.

D. None of the above.

Difficulty: Moderate

21. A state is considering two different environmental projects that offer the net benefit streams displayed in the table below:

Project A Project B Project C

1 80 50 60

Benefits ($) in Year: 2 3 10 10 25 25 40 0

Total net benefits 100 100 100

.

Which project offers the greatest present value at a discount rate of 10%?

A. Project A B. Project B C. Project C D. The projects are equal in the present value of their net benefits.

Difficulty: Moderate

22. Risk assessment consists of several separate steps, namely: A. exposure analysis, discount analysis, distributions analysis.

B. episodic analysis, dose-exposure analysis, community characterization.

C. exposure analysis, dose-response analysis, risk characterization.

D. emission analysis, dose-response analysis, community characterization.

Difficulty: Easy

23. Each of the following is a step in conducting a benefit-cost analysis of a project, except: A. prepare a clear overview of the project including specifics about scale and perspective B. estimate the social costs and benefits of the inputs and outputs of the project C. quantitatively describe the inputs and the outputs of the program D. all of the above are steps in benefit-cost analysis Difficulty: Easy

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Chapter 06 - Framework of Analysis

24. During the process of risk valuation, we often use the likelihood of outcomes to calculate the __________________.

A. probability distribution B. expected value C. future value D. valuation Difficulty: Moderate.

25. An oil refinery plant has requested permission from the community to expand. The expansion is likely to increase the number of deaths in the community due to increased rates of cancer. The number of deaths and their associated probabilities is revealed in the table below: Number of Deaths 0 1 2 3 4

Probability .80 .11 .05 .04 .00

What is the expected value of 0 deaths?

A. 0 B. .8 C. .33 D. Cannot be determined.

Difficulty: Moderate

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Chapter 06 - Framework of Analysis

26. An oil refinery plant has requested permission from the community to expand. The expansion is likely to increase the number of deaths in the community due to increased rates of cancer. The number of deaths and their associated probabilities is revealed in the table below: Number of Deaths 0 1 2 3 4

Probability .80 .11 .05 .04 .00

What is the expected number of deaths?

A. 0 B. .8 C. .33 D. Cannot be determined.

Difficulty: Moderate

27. _________ is a type of risk analysis that focuses on looking at different policy options and the levels of risk they may entail.

A. Risk-benefit analysis B. Comparative-risk analysis C. Risk characterization D. Exposure analysis Difficulty: Easy

28. As part of an environmental risk assessment, scientists and epidemiologists engage in dose-response analysis to determine the relationship between A. medicine and cure rates.

B. exposure and impacts.

C. pesticides and harvest.

D. benefits and costs.

Difficulty: Easy

29. In the United States, environmental impact analyses are mandated by the A. Environmental Protection Agency (EPA).

B. Environmental Impact Agency (EIA).

C. Regulatory Impact Agency (RIA).

D. National Environmental Policy Act (NEPA).

Difficulty: Easy

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Chapter 06 - Framework of Analysis

30. The 1980 Comprehensive Environmental Response, Compensation and Liability Act allows for the calculation of restoration costs in order to determine damages. Some of the difficulties of calculating restoration costs include A. determination of the baseline resource quality.

B. the choice of alternative ways of restoring a resource in a cost-effective way.

C. the determination of a natural or environmental resource of equivalent value.

D. all of the above are difficulties with determining restoration costs.

Difficulty: Easy

31. Cost effectiveness analysis A. estimates the benefits and costs of a project in monetary terms B. estimates the benefits but not the costs of projects C. estimates the costs but not the benefits of projects D. analyzes neither the benefits nor costs of projects 32. An analyst estimated the costs of restoring a resource to its original state. This person is doing A. benefit-cost analysis B. cost effectiveness analysis C. regulatory impact analysis D. resource damage assessment 33. The best way to describe the results of a benefit-cost study is A. project long-term costs B. project net benefits C. project long-run benefits D. project discount rate 34. If the discount rate used in a project analysis is increased A. net benefits will normally increase B. net benefits will be made equal to net costs C. net benefits will normally decrease D. net benefits will be unaffected 35. The first step in risk assessment is A. benefit estimation B. damage calculation C. discounting future benefits D. exposure analysis

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Chapter 07 - Benefit-Cost Analysis: Benefits

Chapter 07 Benefit-Cost Analysis: Benefits

Multiple Choice Questions 1. Changes in productivity, health-care costs, loss of human capital and replacement/restoration of damaged property or businesses are all examples of ________.

A. indirect approaches of cost estimation B. indirect approaches of benefit estimation C. direct approaches of cost estimation D. direct approaches of benefit estimation Difficulty: Easy

2. Preventative expenditures, hedonic estimation, surrogate markets and contingent valuation are all examples of ________.

A. indirect approaches of cost estimation B. indirect approaches of benefit estimation C. direct approaches of cost estimation D. direct approaches of benefit estimation Difficulty: Easy

3. It is possible to estimate ________ by considering information about reductions in worker productivity and medical expenditures.

A. demand for health care B. health damages C. output losses D. willingness to pay for hospitals Difficulty: Moderate

4. The cost of illness approach measures ____________, in order to estimate the benefits of pollution control in terms of reduced health related costs.

A. only direct medical related expenses B. both direct and indirect costs of illness C. only indirect expenses associated with illness D. increases in quality of life Difficulty: Moderate

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Chapter 07 - Benefit-Cost Analysis: Benefits

5. Health states and health indices are often ‘monetized,’ which means A. the value is stated in dollars so that it can be compared with the cost of pollution control.

B. the value is stated in dollars so that people understand the sacrifice to produce an increase.

C. the value is stated in terms of the resources required to produce an increase.

D. the value is stated in terms of the amount that people are willing to pay for increases.

Difficulty: Moderate

6. Refer to Figure 7.1, above. Because of a reduction in air pollution, a farmer has experienced a shift in the supply curve from S1 to S2. If price is p1, one way of estimating the value of the reduced pollution in terms of increased production is ______________.

A. (q2-q1)p1 B. (a+b+c+d+e)-(a+b+c) C. (d+e) D. all of the above Difficulty: Moderate

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Chapter 07 - Benefit-Cost Analysis: Benefits

7. Refer to Figure 7.1 above. Because of a reduction in air pollution a farmer has experience a shift in the supply curve from S1 to S2. If price is p1, the value of the reduced pollution in terms of net income (total value of output minus total production costs) to the farmer is ____________.

A. indeterminate B. (d+e) C. (b+d) D. (b+d) p1 Difficulty: Moderate

8. Air pollution causes materials damages to exposed surfaces (like acid rain on statues).

Which of the following is not considered when estimating materials damage values?

A. Scenic values B. Maintenance costs C. Early replacement costs D. All of the above are potential costs when estimating materials damages.

Difficulty: Easy

9. A simultaneous strength and weakness of contingent valuation is that it is used to determine values for nonmarket goods. People sometimes have difficulty answering contingent valuation questions because ___________________.

A. they lack experience paying for the good B. they have not had time to learn about the value of the good and adjust their purchasing C. they may have an incentive to misstate their true willingness to pay D. all of the above Difficulty: Moderate

10. Some of the costs that are not measured when employing direct damage measures from pollution are __________________.

A. averting costs B. maintenance costs C. increased medical expenditures D. lost productivity Difficulty: Easy

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Chapter 07 - Benefit-Cost Analysis: Benefits

11. The amount that a person would accept in order to be compensated for a small loss in air quality is called ________.

A. willingness to pay B. willingness to accept C. consumer surplus D. change in consumer surplus Difficulty: Easy

12. Suppose public authorities were contemplating locating a hazardous waste incinerator in a particular community. If the members of this community offered to pay $25,000 to keep it out of their area, this amount is equal to their ________ for clean air.

A. willingness to accept B. willingness to pay C. use value D. consumer surplus Difficulty: Moderate

13. There are two categories of willingness to pay estimation methods and these are called: A. monetized and non-monetized costs.

B. market and non-market valuation.

C. revealed preference and stated preference approaches.

D. voluntary and mandatory responses.

Difficulty: Easy

14. Averting costs are __________________.

A. a type of revealed preference B. purchased market goods that affect a consumer’s exposure to the ambient environment C. one way to estimate willingness to pay D. all of the above Difficulty: Easy

15. Contingent valuation is __________________.

A. a type of revealed preference B. a direct method of estimating damages C. a survey approach asking consumers to answer questions regarding their willingness to pay D. all of the above Difficulty: Easy

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Chapter 07 - Benefit-Cost Analysis: Benefits

16. A complication associated with estimating willingness to pay through revealed preference methods is: A. willingness to pay depends on ability to pay.

B. individual measures of willingness to pay may underestimate true benefits due to fact that some people may be willing to pay for benefits to others.

C. both A and B. are complications associated with willingness to pay methods.

D. neither A nor B. are complications associated with willingness to pay methods.

Difficulty: Easy

17. Industrial wage studies that have been conducted reveal _______________.

A. estimates of the value of a statistical life B. an individual’s valuation of their own life C. an estimate of the benefits people might receive from reducing pollution related to premature death D. both A and C. Difficulty: Moderate

18. Valuing children’s health through willingness to pay methods is complicated because A. children may be more impacted by environmental pollution than adults.

B. children are not capable of offering WTP information on their health.

C. some adults have been found to value the health of their children more than their own.

D. all of the above.

Difficulty: Easy

19. Estimating the value of environmental quality through housing prices may be more accurate than industrial wage studies because A. housing prices are more accurately recorded than wage data.

B. wage prices are more regulated than housing prices.

C. industrial wage studies estimate the value of health benefits, but not the aesthetic impacts of environmental quality.

D. people own homes for a longer period than their working lives.

Difficulty: Easy

20. All of the following are examples of revealed preference methods that have been used to estimate the value of environmental quality except _________________.

A. travel costs B. intercity wage differentials C. contingent valuation D. housing costs Difficulty: Easy

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Chapter 07 - Benefit-Cost Analysis: Benefits

21. There are two types of contingent valuation estimates that are practiced: A. valuing environmental amenities and valuing health outcomes.

B. valuing protective regulation and valuing protective sanctions.

C. valuing time preferences and estimating risk aversion.

D. identifying respondent groups and estimating sampling procedures.

Difficulty: Easy

22. The goal of a contingent value questionnaire when valuing an environmental amenity is A. to elicit respondents to reveal whether they would be willing to pay rather than go without the amenity.

B. to elicit respondents to reveal the average amount they would be willing to pay rather than go without the amenity.

C. to elicit respondents to reveal the maximum amount they would be willing to pay rather than go without the amenity.

D. to elicit respondents to reveal the minimum amount they would be willing to pay rather than go without the amenity.

Difficulty: Moderate

23. When estimating the benefits of improved environmental quality, the practice of discounting A. decreases the relative value of programs that yield immediate benefits.

B. decreases the relative value of programs that produce benefits far into the future.

C. should be rejected, due to uncertainty of the discount rate.

D. all of the above.

Difficulty: Easy

24. The practice of estimating willingness to accept A. asks how much compensation people require for a reduction in environmental quality.

B. asks how much respondents are willing to pay for a reduction in environmental quality.

C. is constrained by a respondents’ ability to pay.

D. is typically equivalent to a respondent’s willingness to pay.

Difficulty: Easy

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Chapter 07 - Benefit-Cost Analysis: Benefits

25. Peoples’ willingness to pay for environmental quality and amenities that they may never experience is called nonuse value. All of the following are explanations of nonuse value except A. experience value.

B. option value.

C. stewardship value.

D. existence value.

Difficulty: Easy

26. Option value refers to A. valuing the option of being able to experience an environmental asset in the future.

B. valuing the ability to trade an environmental asset on the stock market.

C. the value assigned to different environmental alternatives.

D. the value people place on having the option to vote on environmental policy.

Difficulty: Easy

27. Answers to willingness to accept questions are typically A. greater than their willingness to pay responses for the same item.

B. equal to their willingness to pay responses for the same item.

C. less than their willingness to pay responses for the same item.

D. have no direct relationship to their willingness to pay responses for the same item.

Difficulty: Easy.

28. In surveys and experimental work where people are asked to compare gains and losses relative to a reference point A. they place a higher value on losses from this reference point than gains.

B. they place a lower value on losses from this reference point than gains.

C. they place an equal value on losses from this reference point than gains.

D. they are inconsistent with regard to whether gains or losses have a higher value.

Difficulty: Moderate

29. _________ determine the specific relationship between ambient pollution exposure and adverse health effects.

A. Environmental economists B. Surveys C. Epidemiologists D. Diffusion models Difficulty: Easy

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Chapter 07 - Benefit-Cost Analysis: Benefits

30. Suppose that the average person in a group of 150,000 people is willing to pay $10 to lower the probability of a random death among members of that group from 10 in 150,000 to 9 in 150,000. Then the total willingness to pay is $10 (150,000) = $1,500,000 is equal to A. the willingness to accept an additional death in the group, based on willingness to pay.

B. the value of a statistical life, based on willingness to pay.

C. the value that each individual places on their own life, based on willingness to pay.

D. the average lifetime earned wage rate of members in the group.

Difficulty: Easy

31. Putting more sound proofing in a house near a noisy highway is an example of A. cost effectiveness determination B. contingent valuation C. direct damage analysis D. averting behavior 32. Differential wage rates among professions can be studied to estimate A. natural resource damages B. the value of a human life C. the costs of chemical exposure D. the cost effectiveness of work rules 33. In contingent valuation studies A. people are asked directly about their willingness to pay B. the objective is to estimate direct damages to natural resources C. environmental health costs are estimated directly D. people are sked to estimate environmental damage 34. Human damages from environmental pollution are mostly related to A. impacts on transportation networks B. human health effects C. lost scenic values D. costs of infrastructure degradation 35. To place greater value on benefits for future generation than for the current generation would require a discount rate to A. increase B. decrease C. be set to zero D. not be a factor in the value

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Chapter 08 - Benefit-Cost Analysis: Costs

Chapter 08 Benefit-Cost Analysis: Costs Multiple Choice Questions 1. Illegal roadside dumping resulting from the introduction of waste disposal charges is one example of the ________ of an environmental policy.

A. pollution control cost B. enforcement cost C. unintended consequences D. before/after result Difficulty: Easy

2. Resources devoted to monitoring the behavior of firms, agencies, and individuals subject to environmental regulations are called ________.

A. abatement costs B. enforcement costs C. private costs D. environmental costs Difficulty: Easy

Table 8.1 Production costs before the regulation Production costs in the future, without the regulation Production costs in the future, with the regulation

$ 200 $ 250 $ 290

3. Refer to Table 8.1. If the with/without principle were applied to estimate the change in cost due to a new environmental regulation, the added costs due to the new regulation would be ________.

A. $90 B. $40 C. $50 D. $290 Difficulty: Easy

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Chapter 08 - Benefit-Cost Analysis: Costs

4. Refer to Table 8.1. If the before/after principle were applied to estimate the change in cost due to a new environmental regulation, the added costs due to the new regulation would be ________.

A. $90 B. $40 C. $50 D. $290 Difficulty: Easy

5. Suppose a manufacturing firm that is about to be regulated faces the following actual and potential production costs: 1) $4,000 before regulation; 2) $4,550 in the future without the regulation; and 3) $5,200 in the future with the regulation. The true cost of the proposed regulation, invoking the with/without principle, is ________.

A. $550 B. $1,200 C. $650 D. impossible to determine from the information provided Difficulty: Easy.

6. Suppose a manufacturing firm that is about to be regulated faces the following actual and potential production costs: 1) $2,500 before regulation; 2) $2,925 in the future without the regulation; and 3) $3,240 in the future with the regulation. The before/after cost of the regulation is ________ and the with/without cost of the regulation is ________.

A. $425; $740 B. $425; $315 C. $740; $315 D. $315; $425 Difficulty: Easy.

7. A city is evaluating a proposal to build a recycling depot. If a generous citizen is willing to donate land for the project with a current market value of $800,000, the ________ of the land is ________.

A. social opportunity cost; $0 B. social opportunity cost; unknown C. private cost to the city; $800,000 D. social opportunity cost; $800,000 Difficulty: Moderate

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Chapter 08 - Benefit-Cost Analysis: Costs

8. Social costs are equal to A. private welfare – social welfare.

B. private costs + social welfare.

C. private costs – external costs.

D. private costs + external costs.

Difficulty: Moderate

9. An example of a cost to a private group that is not a cost from the standpoint of society is ___________.

A. the cost of inputs B. a tax C. pollution D. opportunity cost Difficulty: Moderate

10. Another term for pollution taxes is ___________. These are payments from one group, the polluters, to another group, the administering agency or beneficiary of the tax.

A. transfer payments B. opportunity costs C. external costs D. enforcement costs Difficulty: Moderate

11. Environmental protection and control programs can also have adverse environmental effects and additional costs. Some of these effects and costs include A. media switching.

B. unforeseen impacts as consumers and firms adjust to new programs.

C. mitigating programs meant to reduce or avoid additional environmental impacts.

D. all of the above.

Difficulty: Easy

12. Enforcement costs for new protective programs include A. resources devoted to monitoring the behavior of firms.

B. relaxed enforcement on other regulations.

C. both A and B. are types of enforcement costs.

D. neither A nor B. are an example of enforcement costs.

Difficulty: Easy

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Chapter 08 - Benefit-Cost Analysis: Costs

13. Cost of environmental quality programs can be estimated at a variety of different levels.

Perhaps the most straightforward level would be A. costs of single facilities.

B. costs of a local regulation.

C. costs of regulating an industry.

D. costs at the national level.

Difficulty: Easy

14. When examining the costs associated with a local regulation, the affected local community believes the local social costs are high and A. the broader social opportunity costs are high.

B. the broader social opportunity costs are low.

C. industry production is often reduced.

D. industry employment rates are often impacted.

Difficulty: Easy

15. When providing costs associated with industry regulations that allow firms latitude in their response, the analysis must first begin with A. identification of alternatives that firms might pursue.

B. the impact that the regulation has on production.

C. the impact that the regulation has on employment.

D. the impact that the regulation might have on product prices.

Difficulty: Easy

16. Cost data gathered to construct a representative firm A. is collected by surveying current firms in the industry.

B. can be misrepresentative when the industry is comprised of heterogeneous firms.

C. is typically more accurate for historical costs than future costs under new regulations.

D. all of the above.

Difficulty: Easy

17. Cost data surveys includes questions related to A. number of employees.

B. processes used.

C. costs of energy.

D. all of the above.

Difficulty: Easy

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Chapter 08 - Benefit-Cost Analysis: Costs

18. When evaluating proposals for building a new municipal sewage treatment plant, a benefit-cost analysis A. does not have to include the cost of the land if it is donated.

B. must include the value of the land even if it is donated.

C. may or may not include the cost of the land if it is donated, depending on whether the donor is a private or public entity.

D. benefit-cost studies are not appropriate for municipal projects.

Difficulty: Easy

19. A region is considering two sites on which to locate a new wastewater treatment plant.

Site A has been owned by the region for five years and the region initially paid $200,000 for the land. The current market value of Site A is $400,000. Site B is land the region would have to purchase for $300,000. What is the social opportunity cost of each site?

A. $200,000 for Site A; $300,000 for Site B B. $300,000 for Site A; $300,000 for Site B C. $400,000 for Site A; $300,000 for Site B D. The social opportunity cost should be state for the project, not each site and would be equal to the lowest value for either site, $200,000.

Difficulty: Moderate

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Chapter 08 - Benefit-Cost Analysis: Costs

20. Refer to the Figure above. Panel (a) represents an industry that has experienced cost increases due to environmental regulations. The price per unit increase that the industry experiences, from p1 to p2 A. is equal to the cost per unit increase, from c1 to c2.

B. is less than the cost per unit increase, from c1 to c2.

C. is greater than the cost per unit increase, from c1 to c2.

D. cannot be accurately stated from the picture.

Difficulty: Easy

21. Refer to the Figure above. Panel (b) represents an industry that has experienced cost increases due to environmental regulations. The price per unit increase that the industry experiences, from p1 to p2 A. is equal to the cost per unit increase, from c1 to c2.

B. is less than the cost per unit increase, from c1 to c2.

C. is greater than the cost per unit increase, from c1 to c2.

D. cannot be accurately stated from the picture.

Difficulty: Easy

22. Refer to the Figure above. Panel (a) and Panel (b) represent industries that have experienced cost increases due to environmental regulations. Assume that both price increases are equivalent. Which panel reflects less impact on the consumer and a large industry adjustment, in terms of less output?

A. Panel (a) reflects a larger industry adjustment.

B. Panel (b) reflects a larger industry adjustment.

C. Panel (a) and Panel (b) reflect the same industry impact.

D. The graphs do not indicate which industry is affected more by the regulations.

Difficulty: Moderate

23. Refer to the Figure above. In Panel (a), the increase in total cost of producing the original quantity of output at the new cost associated with increased environmental regulations would be A. p2 x q1.

B. (a + b + c).

C. p2 x q2.

D. p1 x q1.

Difficulty: Moderate

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Chapter 08 - Benefit-Cost Analysis: Costs

24. Refer to the Figure above. In Panel (b), the increase in total cost of producing the original quantity of output at the new cost associated with increased environmental regulations would be A. p2 x r1.

B. (d + e + f).

C. p2 x r2.

D. p1 x r1.

Difficulty: Moderate

25. When environmental economists and policymakers examine the question of how environmental regulations impact the macro economy A. they examine the expenditures made throughout the economy for pollution control.

B. they employ macro economic modeling to determine the relationship between pollution. control expenditures and national economic performance.

C. they use bottom up and/or top down methods.

D. all of the above Difficulty: Moderate

26. When estimating the future costs of adopting future technology for environmental protections and the relevant time horizon is 10 years or longer, the cost projections are complicated due to A. uncertainty regarding what technology will be available.

B. uncertainty regarding the availability of technology for widespread adoption.

C. uncertainty regarding the impact that future technology will have on costs.

D. all of the above.

Difficulty: Easy

27. In effect, the production of power (electricity) without pollution control leads to production distortions and is analogous to A. public subsidies for agriculture.

B. subsidized coastal zone flood insurance.

C. neither A nor B. D. both A and B. Difficulty: Easy

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Chapter 08 - Benefit-Cost Analysis: Costs

28. A cost baseline analysis entails A. an estimation of what costs would be for a firm/industry without any environmental regulations.

B. an exact accounting of costs for a firm/industry with existing regulations at the moment.

C. the estimation of what the firm/industry future cost levels could be expected to be in the absence of a proposed regulation.

D. the estimation of what the firm/industry future/industry cost levels would be if the proposed environmental legislation were enacted.

Difficulty: Easy.

29. When an environmental regulation is enacted, firms and/or industries may experience adjustment costs in terms of reduced output. Firms and industries with a ____________ demand curve will experience _____________ adjustments in output.

A. steeper; greater B. steeper; less C. flatter; greater D. flatter; less Difficulty: Easy.

30. One of the critical elements of success for long run technical change and pollution cost controls in all manufacturing industries is the status and health of the ___________.

A. government B. states rights C. envirotech industry D. cost accounting systems Difficulty: Easy.

31. In evaluating the costs of an environmental regulation we should use A. the with/without principle B. the before/after principle C. the anti-baseline approach D. the costs of insurance against regulation 32. For most countries the costs of environmental regulation amount to about A. 1 to 2 percent of GDP B. 10 to 15 percent of GDP C. 50 – 60 percent of GDP D. zero 8-8 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 08 - Benefit-Cost Analysis: Costs

33. The costs of environmental regulation in future years will be affected by A. the value of the dollar on the foreign currency exchange B. change in pollution-control technology C. the U.S. poverty rate D. the next presidential election 34. Pollution control costs will normally be lower when A. firms are required to adopt certain pollution-control technologies B. firms are given targets and allowed to meet them however the wish C. firms have to make major adjustments to control emissions D. firms participate voluntarily rather than via regulation 35. Social costs include A. private costs and external costs B. external costs only C. long-run costs and private costs D. private costs only

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Chapter 9: Criteria for Evaluating Environmental Policies

Chapter 09 Criteria for Evaluating Environmental Policies

Multiple Choice Questions 1. Moral objections to the use of effluent subsidies to help firms reduce their emissions arise from the idea that .

A. the polluter should pay B. subsidies are politically unpalatable C. subsidies can never be cost-effective D. effluent taxes work better than subsidies Difficulty: Moderate

2. For a policy to be _____________ it must be _______________.

A. efficient; cost effective B. cost effective; efficient C. efficient; centralized D. efficient; decentralized Difficulty: Easy

3. Policies that can be readily adapted to new information about damages, technological innovation and changing economic or social conditions are considered .

A. morally superior B. politically expedient C. fair D. flexible Difficulty: Easy

4. The of a policy is not a criterion used to evaluate a pollution control policy.

A. political acceptability B. fairness C. cost-effectiveness D. incentives to innovate Difficulty: Easy

5. Which of the following is a criterion used by environmental economists to evaluate 9-1 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 9: Criteria for Evaluating Environmental Policies

environmental policies?

A. Efficiency B. Fairness C. Equity D. All of the above Difficulty: Easy

6. A centralized policy requires that A. a controlling administrative agency be responsible for determining what is to be done.

B. all firms and individual decision makers make individual assessments about their emission levels.

C. net incomes are maximized.

D. all of the above.

Difficulty: Easy

7. Public policy makers typically do not have totally accurate information about the pollution control costs that firms or industries face in the real world. Accurate information regarding the costs of adaptation is, for the most part, _____________.

A. unavailable B. private information C. public information D. market information Difficulty: Easy

8. Cost effectiveness is an important piece of the evaluation of public policy because A. damages are often difficult to estimate.

B. cost effectiveness ensures efficiency.

C. cost effectiveness ensures a socially optimal outcome, balancing benefits with costs.

D. all of the above.

Difficulty: Moderate

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Chapter 9: Criteria for Evaluating Environmental Policies

9. Due to the concept that economist call asymmetric information, polluting firms can mislead regulators regarding the costs of abatement. It is often in the interest of polluting firms to _________ the costs abatement so that the regulated target for emissions is _______ than the socially efficient level.

A. understate; lower B. understate; higher C. overstate; lower D. overstate; higher Difficulty: Moderate

10. A program or policy is efficient if A. it provides a maximum of net benefits for society.

B. it distributes benefit equally among society’s members.

C. it maximizes the net income to society.

D. all of the above.

11. Refer to the Figure above. MAC1 represents a mis-estimation of abatement costs. True abatement costs are MAC2; however, the regulatory agency believes that the costs are represented at MAC1 and sets policy accordingly. Due to this error, emissions are ________ than the socially efficient level and damages are ___________ than the socially efficient level.

A. lower; lower B. lower; higher C. higher; lower D. higher; higher Difficulty: Easy

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Chapter 9: Criteria for Evaluating Environmental Policies

Program A B C D

Total Costs 75 75 75 75

Total Benefits 135 135 170 170

Net Benefits 60 60 95 95

Distribution of Net Benefits Group X Group Y 30 30 40 20 25 70 45 50

12. Refer to the Table above. Group X represents a low income group and Group Y represents a high income group. On the basis of efficiency, which program(s) is/are optimal?

A. Program A B. Programs A and B C. Programs C and D D. Indeterminate Difficulty: Moderate

13. Refer to the Table above. Group X represents a low income group and Group Y represents a high income group. Comparing Programs A and B, on the basis of equity, which program would be preferred?

A. Program A B. Program B C. Both are equally equitable D. Indeterminate Difficulty: Moderate

14. Environmental justice is concerned that people of color and low-income people are disproportionately exposed to environmental contaminants. This exposure to the pollutants comes disproportionately from A. indoor air pollution.

B. lead exposure.

C. water pollution.

D. hazardous waste sites.

Difficulty: Easy

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Chapter 9: Criteria for Evaluating Environmental Policies

15. Two main steps in enforcement are A. monitoring and sanctioning.

B. moral suasion and evasion.

C. developing technology and attending court.

D. reporting to the GAO and ensuring compliance.

Difficulty: Easy

16. The paradox of sanctioning is A. the greater the sanction (fines, jail time, etc.) the greater the deterrent; however, courts are reluctant to apply large sanctions.

B. the greater the enforcement costs, the more likely firms are to avoid compliance.

C. the larger the sanction, the greater the publicity.

D. all of the above.

Difficulty: Easy

17. A centralized policy requires that A. a controlling administrative agency be responsible for determining what is to be done.

B. all firms and individual decision makers make individual assessments about their emission levels.

C. net incomes are maximized.

D. all of the above.

Difficulty: Easy

18. One of the criteria of evaluating environmental policy is whether the policy provides incentives to find efficient and innovative ways to lower abatement costs. Which of the following are potential contributors to lowering abatement costs?

A. Research and development B. Education C. Training D. All of the above Difficulty: Easy

19. The rate of technological change for environmental improvement may be too slow because A. private markets typically undersupply private goods.

B. private markets typically undersupply public goods.

C. regulating private markets is typically ineffective.

D. there are no markets for public goods.

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Chapter 9: Criteria for Evaluating Environmental Policies

Difficulty: Easy

20. A technology forcing policy is one that A. forces firms to use a specific technology to abate emissions.

B. requires pollution control targets that force firms to innovate in order to meet the targets and experience reasonable cost increases.

C. forces technology firms to develop environmentally friendly solutions.

D. none of the above.

Difficulty: Easy

21. Cross media transfers refer to A. television and other media pressure for environmental control.

B. the use of media to threaten environmental regulations.

C. the fact asserted by the materials balance equation that reductions of emissions into one media typically result in more emissions into another media, not a total reduction in emissions.

D. both A and B. Difficulty: Easy

22. The materials balance equation asserts that, given a certain quantity of residuals, if the flow going into one environmental medium is reduced (e.g., water) the flow going into the others (air and/or land) must __________.

A. decrease B. increase C. increase exponentially D. increase proportionately Difficulty: Easy

23. 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?

A. Polluters should not be rewarded for terminating environmentally damaging behavior.

B. Those who cause the problem should bear the burden of alleviating it.

C. Polluting is an immoral behavior.

D. All of the above are moral argument used to evaluate environmental policy.

Difficulty: Easy

24. In economics, the concept of market failure refers to A. the failure of unregulated markets to offer the lowest possible prices B. a situation where unregulated markets fail to offer efficient and equitable results C. a lack of equilibrium 9-6 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 9: Criteria for Evaluating Environmental Policies

D. demand curves that have no slope Difficulty: Easy

25. In economics, the concept of government failure refers to A. tendencies within the government that work against efficient and equitable public policy.

B. the conservative agenda.

C. pro-business legislative agendas.

D. a stagnation in Congress.

Difficulty: Easy

26. As major U.S. federal environmental legislation has slowed, A. individual states have played a growing role in environmental policy.

B. the United Nations have played a growing role in environmental policy.

C. individual municipalities have played a growing role in environmental policy.

D. environmental policy has stagnated.

Difficulty: Easy

27. Although the Environmental Protection Agency (EPA) has specific regulations regarding exports of electronic waste A. the GAO has found that other countries do not have similar policies.

B. international firms with plants in the US are not held to those regulations.

C. the GAO has determined that the regulations have not been effectively enforced.

D. both A and C. Difficulty: Easy

28. When examining environmental policy outcomes and consequences, equity considerations can be examined at the level of ___________.

A. income B. region C. international D. all of the above Difficulty: Easy

29. One of the challenges of using equity and fairness to evaluate the effectiveness of public policy is that A. there is no agreement on how to determine what is fair and equitable.

B. there are often trade-offs between distribution of benefits and efficiency.

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Chapter 9: Criteria for Evaluating Environmental Policies

C. the effectiveness of public policy is often determined by voting.

D. both A. and B. Difficulty: Easy

30. It has been determined that the Clean Air Act’s command and control policies that permit frequent adjustment and adaptation to new circumstances are A. inefficient in the short run, but substantially more efficient in the long run.

B. efficient in the short run, but substantially more inefficient in the long run.

C. pro-business in their effect.

D. inefficient in both the short and long run.

Difficulty: Moderate

31. The requirement for efficiency is that A. MD = MAC B. MD > MAC C. MD < MAC D. MD and MAC are not part of efficiency

32. The requirement for equity is that A. MD = MAC B. MD > MAC C. MD < MAC D. MD and MAC are not part of equity

33. When flexibility is added to a policy A. MD will shift but not MAC B. MAC will shift but not MD C. MD and MAC may shift D. MD and MAC will not change

34. Social justice considerations in policy development address A. externalities facing people living near pollution B. enforcement of technology standards C. sanctioning polluters that are in violation of the law D. externalities facing all segments of society equally

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Chapter 9: Criteria for Evaluating Environmental Policies

35. When an environmental policy is adopted by a government agency, it usually includes A. a statement of goals or objectives B. enforcement within one year C. money to finance monitoring D. details about implementation

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Chapter 10 – Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

Chapter 10 Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action Multiple Choice Questions 1. When people can negotiate with each other to come up with mutually satisfactory ways to deal with environmental externalities with little or no involvement of the government this is referred to as ________.

A. moral suasion B. an incentive-based approach C. a decentralized approach D. a centralized approach Difficulty: Easy

2. ________ suggest(s) that in the presence of an externality bargaining can achieve the socially efficient equilibrium regardless of the initial allocation of property rights.

A. Liability laws B. The Coase theorem C. The legal doctrine of standing D. The burden of proof Difficulty: Easy.

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Chapter 10 – Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

3. Suppose both a chemical company and a commercial fishery operate on the same river.

According to the Coase theorem the socially efficient level of emissions can be reached through bargaining between the two parties if ________ has the right to use the river.

A. just the chemical company B. just the fishery C. either the chemical company or the fishery D. the regulator Difficulty: Easy.

4. When public goods are involved _____________ will not bring about efficient outcomes.

A. decentralized approaches B. free riding C. competitive systems D. centralized approaches Difficulty: Moderate

5. Goods that give the same level of pleasure as ordinary goods and involve less environmental damage in either their production, use, or disposal are known as ________.

A. generic goods B. luxury goods C. green goods D. environmental goods Difficulty: Easy.

6. Liability laws are one of the ways to ________ an externality.

A. internalize B. eliminate C. increase D. privatize Difficulty: Easy.

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Chapter 10 – Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

7. If the MAC and MD curves do not change based on who has the property rights, A. multiple socially efficient equilibrium can be reached.

B. no socially efficient equilibrium can be reached.

C. a different socially efficient equilibrium will be reached dependent on who holds the rights to pollute.

D. the same socially efficient equilibrium will be reached independent of who holds the rights to pollute.

Difficulty: Moderate.

8. Regardless of who has the property rights to environmental resources A. net social gains are the same independent of who holds the property rights to pollute.

B. net social gains differ depending upon who holds the property rights to pollute C. net gains accumulate to individuals, not society.

D. a socially efficient equilibrium offers no net gains because MAC will equal MD. Difficulty: Moderate.

9. The Coase theorem states that social efficiency can be obtained through bargaining and A. gains to each party involved will be identical regardless of who has the rights.

B. gains to each party depend on the initial allocation of property rights.

C. gains accumulate to society, not individuals.

D. a socially efficient equilibrium offers no net gains because MAC will equal MD. Difficulty: Moderate.

10. The more ______ an environmental good is, the ______ likely property rights can be used to achieve the socially optimal level of emissions.

A. public; less B. public; more C. private; more D. both A.and C Difficulty: Easy

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Chapter 10 – Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

11. Refer to the Figure above. If the damaging firm is emitting at the uncontrolled emissions level and is required to compensate damaged firms and individuals, the amount of that compensation would be __________.

A. a B. (a+b+c) C. d D. (b+c+d) Difficulty: Easy

12. Refer to the Figure above. 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 A. stop emissions entirely.

B. reduce emissions until total abatement costs are equal to total damages.

C. reduce emission to e*, where marginal damages are equal to marginal abatement costs.

D. stay at the current level of emissions (e1) and pay the damages.

Difficulty: Easy

13. Common law systems rely on court proceedings where claims and counter claims are adjudicated to determine damages and compensation. These proceedings can involve A. a private party making claims of damages to private assets.

B. a private party making claims of damages to public assets.

C. a public agency claiming damages to public assets.

D. all of the above.

Difficulty: Easy

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Chapter 10 – Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

14. The concept of strict liability means that A. polluters will be held responsible for damages regardless of the situation.

B. damages will be interpreted strictly, and compensation will be the highest level determined.

C. there are strict laws that interpret responsibility even if the polluter is a group.

D. penalties will be strictly assigned as incarceration.

Difficulty: Easy

15. Negligence is a form of common law that A. holds polluters responsible regardless of whether they have taken steps to avoid damages.

B. holds polluters responsible only if they have not taken steps to avoid the damages.

C. holds polluters responsible for neglect of an asset.

D. holds government accountable for neglecting to protect public assets.

Difficulty: Easy

16. Nonjoint liability means A. that only one party caused the damages.

B. that only one party may be held responsible for the damages.

C. only one party can sue for damages.

D. parties cannot be held liable for two different damages resulting from the same action.

Difficulty: Easy

17. In the U.S. courts, those seeking to be compensated for damages due to environmental pollution must A. demonstrate that the emissions at issue caused the damages that are presented.

B. demonstrate that the emissions at issue came from the specific defendant.

C. file an action within a specified period of time (typically 2-3 years).

D. all of the above.

Difficulty: Easy

18. Liability laws are an effective way to incentivize efficient pollution solutions when A. relatively few parties are involved.

B. causal linkages are clear.

C. damages are easy to measure.

D. all of the above.

Difficulty: Easy

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Chapter 10 – Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

19. The success of compensatory laws rely on aligning the damages assigned to each polluter with A. the marginal abatement costs.

B. the actual amount of injury they cause.

C. the amount of transactions costs.

D. the costs of clean up.

Difficulty: Easy

20. When a resource has no owner A. it has no marketable value.

B. there is no need to protect the resource.

C. there is less incentive to see that it is not degraded in quality.

D. all of the above.

Difficulty: Easy

21. The problem of misuse of many environmental assets is a result of A. imperfectly specified property rights.

B. private ownership of most environmental assets.

C. public ownership of most environmental assets.

D. high transaction costs.

Difficulty: Easy

22. In order for a property rights approach to produce an efficient level of environmental pollution the following conditions must be met: 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.

D. all of the above.

Difficulty: Easy

23. Transaction costs ________ with the number of parties involved.

A. do not vary directly B. increase C. decrease D. vary inversely Difficulty: Easy

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Chapter 10 – Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

24. Environmental quality improvements are public good so we should expect ____________.

A. free riding B. government failure C. transaction costs D. asymmetric information Difficulty: Easy

25. The likelihood of free riding in the production of environmental quality increases A. over time.

B. when the number of parties affected is large.

C. exponentially.

D. in command economies.

Difficulty: Easy

26. Nonjoint liability means A. that only one party caused the damages.

B. that only one party may be held responsible for the damages.

C. only one party can sue for damages.

D. parties cannot be held liable for two different damages resulting from the same action.

Difficulty: Easy

27. Because of the lack of markets, many countries have sought to develop an innovative property rights plan called A. internalizing externalities.

B. the Coase Theorem.

C. payment for environmental services.

D. Comprehensive Environmental Response, Compensation and Liability Act. Difficulty: Easy

28. An example of social forces that enable voluntary action to be effective is ____________.

A. moral suasion B. informal community pressure C. green goods D. both A and B. Difficulty: Easy

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Chapter 10 – Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

29. Informal community pressure is considered informal because A. the pressure is placed on community not the government, to stop polluting.

B. no media attention is given to this type of action.

C. there are no statutes or legal means used to assert the pressure.

D. the pressure relies on the moral compass of the polluters.

Difficulty: Easy

30. The Emergency Planning and Community Right to Know Act (1986) and the Pollution Prevention Act (1990) require polluters to report toxic emissions in an attempt to leverage _____________ to fight pollution.

A. informal community pressure B. asymmetric information C. moral suasion D. transaction costs Difficulty: Easy

31. Production and consumption of green goods shifts the demand curve for fossil-based power _______________, A. to the right B. to the left C. steeper D. flatter Difficulty: Easy

32. Divestment in the stock of polluting firms, like fossil fuel companies, A. is required by non-profit organizations B. has reduced fossil fuel production by large oil companies C. is modestly successful as an economic incentive D. has reduced fossil fuel use by consumers

33. ISO14001 and LEED certification are examples of A. green markets B. programs supported by the Pollution Prevention Act C. payments for environmental services (PES) D. voluntary pollution reduction programs

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Chapter 10 – Decentralized Policies: Liability Laws, Property Rights, and Voluntary Action

34. What kind of decentralized policy does Greta Thunberg, the Swedish environmental activist, encourage?

A. moral suasion B. liability rules C. private property rights D. environmental damage compensation 35. The Nature Conservancy relies on _________ to buy sensitive natural resources.

A. government funding B. local taxes C. voluntary contributions D. a lottery 36. According to the Coase theorem, if property rights over the environment are clearly defined and negotiation is allowed, the level of effluent will be A. equal among the user of the resource B. efficient among the users of the resource C. favorable to the larger, corporations using the resource D. all of above

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

Chapter 11 Command-and-Control Strategies: The Case of Standards

Multiple Choice Questions 1. A command and control approach to public policy uses _________ in order to bring about socially desirable behavior.

A. incentives B. mandates C. moral suasion D. education Difficulty: Easy

2. The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.

A. the level of abatement that equates MAC and MD B. level of emissions that maximizes total abatement cost C. the level of emissions that minimizes total abatement cost D. the level of emissions that equates MAC and MD

Difficulty: Moderate

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

3. Standards that take the form of never-exceed levels for specific pollutants in an ambient environment are known as ________.

A. emission standards B. ambient standards C. performance standards D. technology-based standards Difficulty: Easy

4. Ambient standards cannot be enforced ___________.

A. consistently B. efficiently C. directly D. indirectly Difficulty: Moderate

5. 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 MD curve are socially efficient.

A. uniform standard; individual standards B. ambient standard; uniform standards C. individual standard; uniform standards D. technology-based standard; uniform standards Difficulty: Easy

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

6. ________ set standards that are unrealistic with today's technology in the hope that they will motivate the pollution-control industry to invent ways of meeting the standard at reasonable cost.

A. Technology-based standards B. Technology-forcing standards C. Strict emission standards D. Performance standards Difficulty: Easy

7. Under ________ the burden is on the ________ to make the right decision about what technology to use.

A. technology-forcing standards; pollution control industry B. technology-based standards; polluting firms C. technology-based standards; public regulatory authority D. emission standards; public regulatory authority Difficulty: Easy

8. Emissions standards do not yield a particular ambient quality due to the interference of ______________.

A. hydrology B. meteorology C. human decisions D. all of the above Difficulty: Easy

9. Emission standards are a type of ________ because they refer to end results that are meant to be achieved by the polluters being regulated.

A. technology standard B. ambient quality standard C. performance standard D. compliance cost Difficulty: Easy

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

10. Technology standards require the adoption of _______________.

A. technology B. techniques C. practices D. all of the above Difficulty: Easy

11. Smoke stack scrubbers are a requirement on many coal burning, electricity-generating plants. Smoke stack scrubbers are an example of ________________.

A. a technology forcing standard B. an emissions standard C. a technology-based standard D. an ambient standard Difficulty: Easy

12. A(n) ________________ sets a constraint on some performance criterion and allows the polluter to choose how to meet that criterion while a(n) _________________ dictates techniques to be used by the polluter A. emission standard; technology standard B. technology standard; emission standard C. public regulatory authority; emission standard D. emission standard; public regulatory authority Difficulty: Easy

13. If an emission standard is set to the right of the socially efficient point of emissions, the result will be a socially inefficient level of pollution and _________ will be greater than __________.

A. total damages; total abatement costs B. total abatement costs; total damages C. marginal damages; marginal abatement costs D. marginal abatement costs; marginal damages Difficulty: Moderate

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

14. 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 __________.

A. total damages; total abatement costs B. total abatement costs; total damages C. marginal damages; marginal abatement costs D. marginal abatement costs; marginal damages Difficulty: Easy

15. __________________ is one that reduces each source by the same percentage of its original.

A. An equiproportionate cutback B. An efficiency point C. A marginalized cost D. Inefficiency Difficulty: Easy

16. Refer to the Figure above. Suppose that MDu represents the damages associated with ambient levels of benzene in an urban area and MDr represents those same damages in a rural area. If both firms are subject to the same abatement cost curve, the socially efficient level of emissions for each region reveals A. lower concentrations of benzene in the urban area.

B. higher concentrations of benzene in rural areas.

C. lower concentrations of benzene in rural areas.

D. both A. and B. Difficulty: Moderate

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

17. Refer to the Figure above. Suppose that MDu represents the damages associated with ambient levels of benzene in an urban area and MDr represents those same damages in a rural area. If the ambient emission standard is set at eu, the standard yields a (n) _________ level of pollution in urban areas but is unnecessarily ____________ for rural areas.

A. socially efficient; strict B. socially efficient; lenient C. inefficient; acceptable D. inefficient; compromised Difficulty: Easy .

18. 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.

A. total; total B. marginal; marginal C. total; marginal D. marginal; total Difficulty: Easy

TABLE 1

Emissions (tons/week) 10 9 8 7 6 5 4 3 2 1 0

Marginal abatements costs ($/ton) Firm 1 Firm 2 Firm 3 $0 4 8 12 16 20 24 28 36 46 58

$0 1 2 4 6 8 12 20 24 28 36

$0 1 2 3 4 5 6 7 8 9 10

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

19. Refer Table 1above. The table reveals the marginal abatement costs of three firms related to the quantity of emissions. Each firm is now emitting 10 tons/week, so total emissions are 30 tons/week. Suppose we wish to reduce total emissions by 50 percent, to 15 tons per week.

What is the cost of this reduction via an equiproportionate decrease in emissions for each firm?

A. $33 B. $69 C. $72 D. $96 Difficulty: Easy

20. Refer Table 1 above. The table reveals the marginal abatement costs of three firms related to the quantity of emissions. Each firm is now emitting 10 tons/week, so total emissions are 30 tons/week. Suppose we wish to reduce total emissions by 50 percent, to 15 tons per week. What is the cost of this reduction via the equimarginal principle?

A. $33 B. $69 C. $72 D. $96 Difficulty: Easy

21. One of the problems with command and control standards is that there is __________ incentive to do better than the standard, even though the costs of further emission reductions may be modest.

A. great B. no C. limited D. perverse Difficulty: Easy

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

22. Refer to the Figure above. Assume that a firm is facing MAC1 and an emissions standard of e2. What is the firm’s cost of compliance for this level of emissions?

A. a B. (e+d+c) C. (a+b+c+d) D. (a+b) Difficulty: Easy

23. Refer to the Figure above. Assume that a firm is facing MAC1 and an emissions standard of e2. What is the firm’s incentive to engage in R&D so that abatement costs are reduced to MAC2?

A. a B. (e+d+c) C. (a+b+c+d) D. (a+b) Difficulty: Easy

24. Refer to the Figure above. Assume that a firm is facing MAC1 and an emissions standard of e2. What is the firm’s reduction in compliance costs in obtaining the emission standard of e2 if the firm is successful in reducing abatement costs from MAC1 to MAC2?

A. a B. (e+d+c) C. (a+b+c+d) D. (a+b) Difficulty: Easy

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

25. Emission standards specify the technologies, techniques, or practices that___________.

A. are the best practices B. ensure that there is no health risk to the population C. achieve the best pollution results with the least possible costs D. potential polluters must adopt Difficulty: Easy

26. Ambient quality of river water depends on ____________.

A. emissions B. hydrology C. meteorology D. A and B Difficulty: Easy

27. When marginal damages for a pollutant vary by region, time of day, or season, A. a uniform standard yields a socially efficient level of pollution.

B. individual standards that equate the MAC to each MD yield a socially efficient level of pollution.

C. there is no current regulation approach that will yield a socially efficient level of pollution.

D. technology standards yield a social efficient level of pollution.

Difficulty: Moderate

28 Technology-based standards A. are always cost effective.

B. encourage firms to seek out new technology.

C. provide firms with no incentive to find cheaper ways to reduce their emissions.

D. all of the above.

Difficulty: Easy

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

29. When determining the socially efficient level of emissions, A. enforcement costs should be included to determine an accurate cost of emission reductions.

B. enforcement costs should not be considered a part of the cost of emission reductions.

C. enforcement costs should only be considered a part of the cost of emissions reductions if the firm considers the costs in their abatement cost curve.

D. enforcement costs cannot be accurately estimated and should not be considered.

Difficulty: Easy

30. There are several ways to monitor a firm’s emissions, included among these are A. self-monitoring.

B. remote monitoring technology.

C. continuous measurement with electronic monitoring.

D. all of the above.

Difficulty: Easy

31. The Massachusetts Department of Environmental Protection has banned the disposal of commercial organic waste by businesses and institutions that dispose of one ton or more of the materials per week. This is an example of A. a technology standard B. an emissions standard C. an ambient standard D. a property rights standard 32. Boulder, Colorado, sets the maximum number of decibels permitted by a source from 7 a.m. to 11 p.m. in a residential area to be 55dBA. One exception is if the sound was made by an animal. This is an example of A. a technology standard B. an emissions standard C. an ambient standard D. a property rights standard

33. The Barber, Cosmetology, Esthetics, Hair Braiding, and Nail Technology Act requires hospital grade disinfectant be used at workstations after each client. This is an example of A. a technology standard B. an emissions standard C. an ambient standard D. a property rights standard

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Chapter 11 – Command-and-Control Strategies: The Case of Standards

34. The World Health Organization sets guidelines for exposure to carbon monoxide at a 10ppm or less average over 8 hours. This is an example of A. a technology standard B. an emissions standard C. an ambient standard D. a property rights standard

35. Total emissions from 2-stoke, leaf blowers can be decreased by A. reducing the number of leaf blowers in use B. changing the power technology of leaf blowers C. tightening emissions standards of 2-stroke engines D. all of above

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

Chapter 12 Incentive-Based Strategies: Emission Charges and Subsidies

Multiple Choice Questions 1. There are two types of incentive based environmental policies A. market-based systems and technology standards.

B. market-based systems and taxes/subsidy programs.

C. taxes/subsidy programs and technology standards.

D. technology standards and emissions standards.

Difficulty: Easy

2. Which of the following is an example of a market based system for pollution control?

A. Taxes on emissions B. Subsidies for abatement C. Transferable discharge permits D. Deposit refund programs Difficulty: Easy

3. Emission charges is a term that is synonymous with ________________.

A. emission subsidies B. emission taxes C. emission prices D. emission permits Difficulty: Easy

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

Emissions (tons/month) 10 9 8 7 6 5 4 3 2 1 0

Marginal Abatement Cost 0 15 30 50 70 100 120 150 185 230 290

Total Abatement Cost

Total Tax Bill at $100/ton 1000 900 800 700 600 500 400 300 200 100 0

Total Costs

4. Refer to the Table above. The firm above faces an emissions charge of $100 per ton/month.

If the firm chooses to emit 5 tons/month what is the firm’s total cost?

A. $265 B. $600 C. $765 D. $865 Difficulty: Moderate

5. Refer to the Table above. The firm above faces an emissions charge of $100 per ton/month.

If the firm chooses to emit 0 tons/month what is the firm’s total cost?

A. $290 B. $1290 C. $2235 D. $1240 Difficulty: Moderate

6. Refer to the Table above. The firm above faces an emissions charge of $100 per ton/month.

At what level of emissions does the firm minimize total abatement cost?

A. 10 B. 5 C. 4 D. 0 Difficulty: Moderate

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

7. Refer to the Table above. If the firm above faced an emissions charge of $150 per ton/month, at what level of emissions does the firm minimize total abatement cost?

A. 3 B. 4 C. 5 D. 8 Difficulty: Moderate

8. Refer to the Table above. If a regulatory agency simply mandated that the firm could emit a maximum of 5 tons/month and there were no emission charges, what would the firm’s total abatement costs be?

A. $100 B. $265 C. $500 D. $765 Difficulty: Moderate

9. Which of the following statements about abatement subsidies is NOT true?

A. Environmental groups dislike abatement subsidies because they appear to reward polluters.

B. Governments like abatement subsidies because they are relatively inexpensive to implement.

C. Abatement subsidies are popular with firms.

D. Abatement subsidies create perverse incentives for firms to increase emissions when their base levels are being set.

Difficulty: Easy

10. Which of the following statements is true?

A. Polluting firms would prefer emission standards to emission charges.

B. Polluting firms would prefer emission charges to emission standards.

C. In order to arrive at a socially efficient solution, we must use emission standards and not emission charges.

D. None of the above are true.

Difficulty: Easy

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

11. Refer to the Figure above. If the firm above faced an emissions charge of $ t* per ton/month, at what level does the firm reach a socially efficient solution for emissions?

A. 0 B. e1 C. e* D. e0 Difficulty: Easy.

12. Refer to the Figure above. If the firm above faced an emissions charge of $ t* per ton/month and the firm is producing at the socially efficient level of emissions, what is the value of the total abatement cost?

A. t* (a+b+c+d) B. (a+b+c+d+e) C. (a+b+c+d) D. (b+d+e) Difficulty: Moderate

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

13. Refer to the Figure above. If the firm above faced an emissions charge of $ t* per ton/month, what is the amount of taxation collected?

A. t* (a+b+c+d) B. (a+b+c+d+e) C. (a+b+c+d) D. (b+d+e) Difficulty: Moderate

14. Refer to the Figure above. If the firm above did not face emissions charges but instead, faced an emission standard of e*, abatement costs would be equal to ____________.

A. (b+d+e+f) B. (e) C. (a+b+c+d) D. (b+d+e) Difficulty: Moderate

15. Refer to the Figure above If this firm were to consider the difference between an emission tax of t* or an emissions standard of e*, what would the firm conclude is the monetary difference between the two programs?

A. The emissions standard costs less than the taxation program by the amount of (a+b+c+d).

B. The emissions standard costs more than the taxation program by the amount of (a+b+c+d).

C. There is no monetary difference between the two programs.

D. There is not enough information to determine the difference between the two programs.

Difficulty: Moderate

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

16. Pollution taxes are transfer payments. This means A. they are not a cost to the firm.

B. they are not a social cost of policy.

C. the costs associated with collection are not considered enforcement costs.

D. all of the above.

Difficulty: Easy

17. When multiple firms are emitting, an emissions tax controls emissions in a way that A. satisfies the equimarginal principle.

B. encourages firms to emit to the point where there marginal abatement cost equals the tax.

C. equalizes marginal abatement costs across all firms.

D. all of the above.

Difficulty: Moderate

TABLE 1

Emissions (tons/week) 10 9 8 7 6 5 4 3 2 1 0

Marginal abatements costs ($/ton) Firm 1 Firm 2 Firm 3 $0 4 8 12 16 20 24 28 36 46 58

$0 1 2 4 6 8 12 20 24 28 36

$0 1 2 3 4 5 6 7 8 9 10

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

18. Refer to Table 1. If the firms above faced an emissions tax of $8, what level of total emissions would occur?

A. 12 B. 15 C. 100 D. 127 Difficulty: Easy

19. Refer to Table 1. If the firms above faced an emissions tax of $8, what level of total abatement costs would be expended?

A. $69 B. 24 C. $24 in abatement costs and $24 in taxes D. $45 in abatement costs and $24 in taxes Difficulty: Moderate

20. Refer to Table 1. If the firms above faced an emissions tax of $12, what level of total emissions would occur?

A. 11 B. 21 C. 83 D. 138 Difficulty: Moderate

21. Refer to Table 1. If the firms above faced an emissions tax of $12, what level of total abatement costs would be expended?

A. 33 B. 57 C. $36 in abatement costs and $36 in taxes D. $21 in abatement costs and $36 in taxes Difficulty: Moderate

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

22. Emissions taxes lead to A. a larger reduction in emissions from firms with lower abatement costs.

B. a larger reduction in emissions from firms with higher abatement costs.

C. an equal distribution of emissions reductions among firms with different abatement costs.

D. a different emission tax applied to firms depending on their abatement costs.

Difficulty: Easy

23. Efficiency results of emissions taxes are achievable A. if regulators know the structure of each emitting firm’s abatement cost curve.

B. even if regulators do not know the structure of each emitting firm’s abatement cost curve.

C. only when each emitting firm experiences the same abatement cost curve.

D. both A and C. Difficulty: Easy

24. When emissions are nonuniform and some sources produce higher damages than others A. uniform emissions charges produce efficient levels of emissions.

B. firms that produce greater damages must be charged higher emissions charges in order to secure efficient levels of emissions.

C. the damage reduction per dollar spent in reducing emissions, including emissions taxes and abatement costs, should be equalized across sources.

D. both B and C. Difficulty: Moderate

25. If regulators are considering an emissions tax, they will be more uncertain about the resulting level of emissions if A. firms in the industry experience a steep abatement cost curve.

B. firms in the industry experience a flat abatement cost curve.

C. the firms are located in a rural area.

D. the firms are located in an urban area.

Difficulty: Easy

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

26. Refer to the Figure above. A firm facing an emissions charge of t and an abatement cost curve of MAC1 will emit e1 and A. face abatement costs of (a+b+c+d+e).

B. face abatement costs of (a+b+d+e).

C. face abatement costs of (d+e) and taxation charges of (a+b+c).

D. face abatement costs of (d+e) and taxation charges of (a+b).

Difficulty: Easy

27. Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC1. If the firm is able to lower its abatement cost curve to MAC2, it will A. emit at level e1 and save (d+e).

B. emit at level e1 and save (d).

C. emit at level e2 and save (c+d).

D. emit at level e1 and save (d+e).

Difficulty: Moderate

28. Refer to the Figure above. The firm is facing an emissions charge of t and an abatement cost curve of MAC1. If the firm is able to lower its abatement cost curve to MAC2, and it now faces an emissions standard of e1, the firm will A. emit at level e1 and save (d+e).

B. emit at level e1 and save (d).

C. emit at level e2 and save (c+d).

D. emit at level e1 and save (d+e).

Difficulty: Moderate

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

29. Which of the following is true when emission charges are compared to emission standards?

A. Polluters pay both emission charges and abatement cost charges under a policy of emissions charges, but only pay for abatement costs when emission standards are in place.

B. Polluters automatically reduce their emissions when abatement costs decline under a policy of emissions charges, but do not reduce their emissions automatically when standards are in place and abatement costs decline.

C. Polluters will realize bigger pollution control cost reductions from R&D efforts under a policy of emission charges than under a policy of emission standards.

D. all of the above.

Difficulty: Moderate

Emissions (tons/month) 10 9 8 7 6 5 4 3 2 1 0

Marginal Abatement Cost 0 15 30 50 70 95 120 150 185 230 290

Total Abatement Cost 0 15 45 95 165 260 375 525 710 940 1,230

Total Subsidy at $120/ton 0 120 240 360 480 600 720 840 960 1,080 1,200

30. Refer to the Table above. What level of emissions would a firm choose given the marginal abatement cost and the subsidy level detailed above?

A. Indeterminate B. 0 C. 4 D. 9 Difficulty: Moderate

31. A two-part emission charge A. means changing different rates at different emission levels of a single pollutant B. means some polluters are charged zero, while other polluters are charged a positive fee for the same emission level C. means some polluters earn a subsidy while other polluters pay a charge D. allows polluters to share emissions charges between two facilities

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Chapter 12 – Incentive-Based Strategies: Emission Charges and Subsidies

32. The primary source of carbon dioxide emissions is A. deforestation B. burning fossil fuels C. exhaling by all animal life D. rotting plant debris 33. Placing a carbon tax “upstream” means A. applying a carbon tax to retailers (online and brick & mortar stores) B. applying a carbon tax to polluters along rivers and other waterbodies C. applying a carbon tax when fossil fuels are first sold D. applying a carbon tax at the fossil fuel pump for automobiles 34. Which of the following are examples of deposit-refund systems?

A. beverage containers in some states in the U.S. B. new cars in Sweden C. waste oil in Germany D. all of above 35. Abatement subsidies can increase total emissions when A. the pollution control technology supported by the subsidy is outdated B. the number of polluting firms entering the industry increases to gain the subsidies C. marginal abatement costs decrease while marginal damages remain the same D. marginal damages decrease while marginal abatement costs remain the same

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Chapter 13 – Incentive-Based Strategies: Market Trading Systems

Chapter 13 Incentive-Based Strategies: Market Trading Systems

Multiple Choice Questions 1. Offset trading is a trading system designed to achieve more efficient pollution control. It can be described as: A. a program that issues tradable permits in order to limit aggregate emissions.

B. a program that regulates the base rate at which pollutants are emitted.

C. a program that sets a standard for emission that no firm can exceed.

D. a program that allows new firms to pay existing firms to reduce their emissions below a standard.

Difficulty: Easy

2. Emission rate trading is a trading system designed to achieve more efficient pollution control. It can be described as: A. a program that issues tradable permits in order to limit aggregate emissions.

B. a program that regulates the base rate at which pollutants are emitted.

C. a program that sets a standard for emission that no firm can exceed.

D. a program that allows new firms to pay existing firms to reduce their emissions below a standard.

Difficulty: Easy

3. Cap-and-trade is a trading system designed to achieve more efficient pollution control. It can be described as: A. a program that issues tradable permits in order to limit aggregate emissions.

B. a program that regulates the base rate at which pollutants are emitted.

C. a program that sets a standard for emission that no firm can exceed.

D. a program that allows new firms to pay existing firms to reduce their emissions below a standard.

Difficulty: Easy

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Chapter 13 – Incentive-Based Strategies: Market Trading Systems

4. A polluter will ________ its emissions and sell its excess permits on the market if the market price of permits is ________ its MAC at its chosen emission level.

A. reduce; less than B. reduce; greater than C. increase; less than D. increase; greater than Difficulty: Easy

5. In a cap-and-trade program, permits flow from polluters with relatively ________ abatement cost curves to polluters with relatively ___________ abatement cost curves.

A. low; high B. high; low C. steep; flat D. flat; steep Difficulty: Easy

6. The ________ established an innovative permit-trading scheme for the control of airborne SO2 emissions in ________.

A. 1990 Clean Air Act Amendments; Canada B. 1990 Clean Air Act Amendments; the United States C. Canadian Environmental Protection Act; Canada D. Cross-State Air Pollution Rule; the United States Difficulty: Moderate

7. A polluter will ______ a permit if the price is ________ its MAC of controlling emissions.

A. sell; less than B. buy; greater than C. buy; less than D. all of the above Difficulty: Moderate

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Chapter 13 – Incentive-Based Strategies: Market Trading Systems

8. The supply curve for permits in a cap-and-trade program is ____________.

A. downward sloping B. upward sloping C. a vertical line D. a horizontal line Difficulty: Moderate

9. Transferable emission permit programs work best if A. there is asymmetric information between buyers and sellers.

B. many different markets available for buying and selling permits.

C. the permit market is competitive among buyers and sellers.

D. none of the above.

Difficulty: Easy

10. The first problem encountered when trying to institute a cap-and-trade program is A. assigning a regulatory agency to oversee the program.

B. establishing a market for permits.

C. setting the price for permits.

D. the initial distribution of the permits.

Difficulty: Easy

11. One of the ways that initial pollution rights can be allocated in a cap-and-trade program is by equal distribution among all existing sources of a particular effluent. Which of the following is a reason that equal distribution of initial pollution rights among polluters is flawed?

A. Existing firms within an industry vary in size.

B. Firms in different industries may vary in value of output.

C. This method does not reward those who have invested in emissions reductions already.

D. All of the above.

Difficulty: Easy

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Chapter 13 – Incentive-Based Strategies: Market Trading Systems

12. Cap-and-trade programs require an established set of rules for trading. It is recommended that the regulating agency set the rules and not interfere with the market, because market interference A. increases transactions costs.

B. causes uncertainty.

C. interferes with the efficient flow of permits.

D. all of the above.

Difficulty: Easy

13. The most direct way to accomplish a reduction in the number of permits for a cap-andtrade is A. initial distribution of permits is dated according to the year in which it may be used, after which a declining set of permits would be issued.

B. regulating agencies could buy permits and retire them.

C. new laws could be adopted periodically to adjust the distribution and number of permits.

D. regulators could request that firms leave the industry.

Difficulty: Easy

14. One solution to a cap-and-trade program with firms that vary in the level of damages that their emissions cause is A. a program restricts trading between zones that are grouped according to damages.

B. a program that establishes trading ratios between zones that are grouped according to damages.

C. a program that doesn’t allow trading.

D. both A and B. Difficulty: Easy

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Chapter 13 – Incentive-Based Strategies: Market Trading Systems

15. Refer to the Figure above. Assume that the firm is facing MAC1 and that it has adjusted its permit holdings to e1. What are the firm’s abatement costs?

A. (a+b) B. (a+b+c) C. (a+b+c+d) D. (e) Difficulty: Easy

16. Refer to the Figure above. Assume that the firm is facing MAC1 and that it has adjusted its permit holdings to e1. What is the firm’s permit purchase costs?

A. (e+d+b) B. (c+d+e) C. (e+d) D. (e) Difficulty: Easy

17. Refer to the Figure above. Assume that the firm is facing MAC1 and that it has adjusted its permit holdings to e1. What is the firm’s incentive to engage in R&D to reduce abatement costs to MAC2?

A. (a+b) B. (a+c) C. (a+b+c) D. (a+b+c+d) Difficulty: Moderate

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Chapter 13 – Incentive-Based Strategies: Market Trading Systems

18. The EPA program that established an allowable base rate for the amount of lead in the gasoline that oil refineries produced and allowed for the trading of excess allowances is an example of ____________.

A. offset trading B. emission rate trading C. carbon offset markets D. renewable portfolio requirements Difficulty: Easy

19. Transferable emission permit schemes provide _______ incentive to invest in R&D to find cheaper methods of reducing emissions as emission taxes that achieve the same level of abatement.

A. a different B. the same C. a greater D. a lower Difficulty: Moderate

20. The EPA's CAP program for _________ was the first large-scale example of a system of transferable emission permits tried in the United States.

A. leaded gasoline B. SO2 C. NOx D. CO2 Difficulty: Easy

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Chapter 13 – Incentive-Based Strategies: Market Trading Systems

21. The EPA's CAP program for SO2 gave producers an incentive to look for cheaper ways of lowering emissions because A. an emissions rate was mandated for firms and the penalties were high.

B. increasing scarcity of permits drove their price up.

C. offset trading offered large trade gains.

D. emissions taxes were enforced with vigor.

Difficulty: Easy

22. The EPA's CAP market allowed firms to use whatever means they found the cheapest to reduce SO2 emissions A. but required specific technology that had to be used.

B. rather than dictating the technology to be used.

C. and placed pollution control objectives in the hands of the polluters.

D. and sets the price for which discharge permits will be exchanged.

Difficulty: Easy

23. One of the ways that initial pollution rights can be allocated in a cap-and-trade program is that each firm receives permits amounting to 50% of their current emissions. Which of the following is a reason that this distribution of initial pollution rights among polluters is flawed?

A. This system rewards firms that have delayed decreasing their emissions.

B. Firms have an incentive to increase emissions prior to the implementation of the program.

C. This method does not reward those who have invested in emissions reductions already.

D. All of the above.

Difficulty: Easy

24. Policy approaches that encourage pollution control through trade are more ________ than those polices that rely on technology standards.

A. decentralized B. centralized C. market based D. both A and C. Difficulty: Easy

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Chapter 13 – Incentive-Based Strategies: Market Trading Systems

25. In cap-and-trade programs where the damages are non-uniform, there is a direct trade-off between the hydrological and meteorological reasons for restricting trade and A. the economic efficiencies that result from competition.

B. the political resistance to taxation.

C. the enforcement authority of the EPA. D. the incentives for R&D. Difficulty: Moderate

26. Transferable discharge systems and emission charge systems seek to remove technical pollution control decision-making from central administrators and place it into the hands of _____________.

A. the voters B. the EPA C. the polluters themselves D. those most harmed by pollution Difficulty: Easy

27. In a cap-and-trade program, as polluters buy and sell permits, they move to a situation where A. all firms’ marginal abatement costs are equal to the price of the permits.

B. the demand for permits will exceed the supply.

C. total abatement costs are equal to the total amount spent on permits.

D. the total amount spent on permits is less than the total amount spent on abatement.

Difficulty: Easy

28. In a competitive market for transferable discharge permits, the demand curve is equal to A. the aggregate supply curve for all firms supplying permits.

B. the aggregate marginal abatement cost functions of all the firms participating in the market.

C. the aggregate production curve for all firms participating in the market.

D. the aggregate emissions curve for all firms participating in the market.

Difficulty: Moderate

29. When we compare the monitoring and enforcement requirements between emissions charges programs and transferable discharge permits, it is clear that A. transferable discharge programs require more monitoring and enforcement efforts.

B. emissions charge programs require more monitoring and enforcement efforts.

C. there is little difference between the programs with regard to monitoring and enforcement.

D. neither program requires centralized monitoring and enforcement.

Difficulty: Easy

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Chapter 13 – Incentive-Based Strategies: Market Trading Systems

30. The concept of a safety value in CAP programs means A. there is an upper limit price that, if reached, would trigger the release of more permits.

B. there is a lower limit price that, if reached, would trigger the retirement of permits.

C. the EPA is allowed to purchase permits in order to maintain a higher price.

D. both A. and B. Difficulty: Easy

31. Increasing the number of zones in a permit trading program will A. potentially improve equity among heavy and light polluters B. probably yield fewer number of traders within each zone C. address any hotspot problem D. all of above 32. Total emissions from polluters decreases in a CAP program if A. the total number of permits decreases B. the marginal abatement cost of each polluter increases C. the price of permits decreases each year D. the CAP program expands to include additional types of pollutants 33. A polluter in a CAP program will purchase a permit rather than decrease emissions when A. the permit price is zero B. MAC < permit price C. MAC > permit price D. none of above 34. With transferable discharge systems and emissions charge systems, the objectives of controlling pollution for society are A. set by individual polluters B. set by a central administration C. determined by the market D. determined by voting 35. CAP programs seem to work best with A. non-point source pollution B. point-source pollution C. global pollution, such as CO2 D. local pollution, such as municipal solid waste

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Chapter 14 – Federal Water Pollution-Control Policy

Chapter 14 Federal Water Pollution-Control Policy

Multiple Choice Questions 1. Although there are many types of waterborne pollutants, policy tends to differentiate between or among A. conventional and non-conventional pollutants.

B. conventional, nonconventional and toxic pollutants.

C. non-conventional pollutants and toxic pollutants.

D. toxic and non-toxic pollutants.

Difficulty: Easy

2. Municipal wastewater treatment plants often discharge wastewater from a single outfall.

This type of water pollution is called _________________.

A. solitary B. continuous C. point source D. non-point source Difficulty: Hard

3. Urban storm water runoff is a type of water pollution that is called ___________________.

A. non-point source pollution B. point source pollution C. natural source pollution D. built environmental pollution Difficulty: Easy

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Chapter 14 – Federal Water Pollution-Control Policy

4. When people are continuously exposed to a drinking water pollutant, we would call this type of pollution _______________________.

A. episodic emissions B. continuous emissions C. conventional source emissions D. non-conventional source emissions Difficulty: Easy

5. The accident release of oil into the Gulf of Mexico or the nuclear accidentrelease at Fukushima Japan are considered ___________________.

A. non-natural water pollution B. conventional water pollution C. continuous water pollution D. episodic emissions Difficulty: Easy

6. __________pollutants are pollutants that remain for a longer period of time, either because they are nondegradable or because the rate of degradation is very slow.

A. Nonpersistant B. Persistent C. BOD D. Toxic Difficulty: Easy

7. High levels of _____________are associated with high-quality water, this water supports aquatic flora and fauna, domestic water supply, and quality recreational activities.

A. conventional pollutants B. biochemical oxygen demand C. dissolved oxygen (DO) D. degradable pollutants Difficulty: Easy

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Chapter 14 – Federal Water Pollution-Control Policy

8. In terms of human scale, radioactive waste is essentially ___________.

A. a persistent pollutant B. a degradable pollutant C. an episodic emission D. none of the above Difficulty: Easy

9. The 1899 refuse act was not an attempt to control water pollution but an attempt to ensure _________________.

A. limited water diversion B. water navigation C. control of land pollution D. building rights of the U.S. Army Corps of Engineers Difficulty: Easy

10. It wasn’t until the creation of _______________ that a direct Federal role was established for water pollution control.

A. the US Army Corp of Engineers B. the Environmental Protection Agency C. the Uniform Standard Emissions Act D. the 1948 Water Quality Act Difficulty: Easy

11. The 1965 Water Quality Act encouraged states to develop ambient standards for water quality. Ambient standards are A. a never-exceed level of pollutant in a particular water sources.

B. a method that calls for zero tolerance of water pollutants in a particular source.

C. only effective for point source pollution.

D. only effective for non-point source pollution.

Difficulty: Easy

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Chapter 14 – Federal Water Pollution-Control Policy

12. The 1972 Water Pollution Control Act Amendments changed the policy approach of water pollution control from one of ______________ to one of _______________.

A. federal control; state control B. municipal control; state control C. ambient quality; technology based effluent standards D. technology based effluent standards; ambient quality Difficulty: Easy

13. While technology-based effluent standards help reduce point source emissions, the 1987 Water Quality Act has sought to control non-point source emissions through A. goals of zero discharge.

B. best management practices (BMPs).

C. criminal legislation.

D. discharge permits.

Difficulty: Easy

14. Best management practices (BMPs) are federally approved, and often subsidized, practices or techniques that reduce A. costs associated with water pollution remediation.

B. costs associated with administration of pollution control.

C. runoff of non-point source water pollution.

D. lack of compliance with point source technology based effluent standards.

Difficulty: Moderate

15. In Phase I of the Water Pollution Control Act of 1972, the EPA set emission standards based on _________________________.

A. BPTs, best practicable technology B. BATs, best available technology C. BCT, best conventional technology D. TBES, technology based effluent standards Difficulty: Easy

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Chapter 14 – Federal Water Pollution-Control Policy

16. Best Available Technology (BAT) is generally considered _____________ than Best Practicable Technology (BPT) A. more economical B. more stringent C. less stringent D. more precise Difficulty: Moderate

17. The logic and application of the TBES (technology-based effluent standards) process and its application at the national level A. ensures that there is a balance between damages and cost control.

B. ensures that all firms within an industry meet the equimarginal condition.

C. all of the above.

D. none of the above.

Difficulty: Moderate

18. The Clean Water Act, which has been primarily aimed at point source water pollution, has moved the United States ________ of the way toward zero-discharge levels for point sources.

A. 20-30% B. 50-60% C. 5-10% D. 90-100% Difficulty: Moderate

19. Although TBESs are emissions standards, because specific technology is used to determine the emission standard, firms are often A. reluctant to take a risk and explore cheaper and alternative technologies.

B. unintentionally encouraged to use the technology that was used to set the standard.

C. discouraged from practicing pollution prevention.

D. all of the above.

Difficulty: Moderate

Figure 1:

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Chapter 14 – Federal Water Pollution-Control Policy

20. Refer to the Figure above. TBESs focus on the process in __________________.

A. Figure 1 B. box (1) C. box (2) D. in the figure labeled ‘Emissions’ Difficulty: Moderate

21. Refer to the Figure above. When pollution control is criticized for focusing on the end-of –the pipe, it refers to technology based effluent standards that focus on _____________.

A. Figure 1 B. box (1) C. box (2) D. recycling Difficulty: Easy

22. Wastewater treatment plants engage in different levels of treatment for municipal water.

The different degrees of treatment are designated A. primary, secondary, and tertiary.

B. BOD, activated sludge, and chemical processing.

C. no treatment, secondary treatment, and primary treatment.

D. physical, biological, and chemical.

Difficulty: Easy

23. Some of the difficulties of using design standards to control non-point source pollution include A. administrative determination of the technology or techniques that are allowed for control.

B. the weakening of individual incentives to find new ways to reduce emissions.

C. the difficulty of measuring emissions accurately.

D. all of the above.

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Chapter 14 – Federal Water Pollution-Control Policy Difficulty: Easy

24. One way to control non-point source emissions is A. determine the source of pollution and fine those who are emitting.

B. request that the sources self-identify and tax those who are emitting.

C. offer a reward for identifying those who are emitting.

D. tax the activities or materials that lead to the emissions, rather than the emissions themselves.

Difficulty: Easy

25. After the state has established a total maximum daily load for a body of water and after that load has been distributed among the sources of emissions, a system of ________ can be developed to encourage cost effectiveness.

A. state revolving funds B. emissions trading C. technology based effluent standards D. best management practices Difficulty: Moderate

26. Emissions trading for water pollutants may be more complex than emissions trading for air pollutants. Trading networks must be A. limited to sources discharging into particular bodies of water.

B. limited according to the industry and the product that the firm produces.

C. unlimited geographically, but limited to domestic polluters.

D. best if they are completely unlimited.

Difficulty: Moderate

27. Controlling water pollution by establishing total maximum daily loads is a type of A. technology based effluent standard.

B. ambient standard.

C. emissions trading system.

D. best management practice.

Difficulty: Moderate

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Chapter 14 – Federal Water Pollution-Control Policy

28. Over the last several decades, the proportion of the U.S. population that is served by secondary or tertiary water treatment facilities has _________________.

A. decreased B. increased C. remained the same D. remained unmeasured Difficulty: Easy

29. The engineering focused approach of technology-based effluent standards A. is likely to be cost in-effective, and not consistent with the equimarginal principle.

B. is subject to political interests while the EPA is required to make engineering decisions.

C. is substantially undermined by the requirements of monitoring and enforcement.

D. all of the above.

Difficulty: Moderate

30. Federal subsidies for water treatment plants have encouraged A. municipalities to build plants with excess capacity.

B. state and local governments to reduce their contributions toward these public works.

C. more access to secondary and tertiary treated water for U.S. citizens.

D. all of the above.

Difficulty: Easy

31. Using permit markets to combat regional water pollution can be problematic because A. permits are issued nationally, and water pollution is local.

B. the permit price is set via the Chicago Mercantile Exchange C. taxes to pay for permits must be approved by voters D. there are a relatively small number of traders

32. The National Network on Water Quality Trading guides programs for A. agricultural run-off B. watersheds C. storm water D. all of the above

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Chapter 14 – Federal Water Pollution-Control Policy

B. reduction in emissions in one location increases emissions in another location C. emissions from one source occurs in two locations D. funding for one EPA program benefits other EPA programs

34. The Water Infrastructure Finance and Innovation Act (WIFIA) allows A. private drinking water facilities to be built B. joint private and government ventures for drinking water facilities C. tribal drinking water facilities to operate independent of EPA rules D. spending on wastewater but not on drinking water

35. Federal water pollution control policy began in A. 1789 B. 1899 C. 1999 D. 2009

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Chapter 15 – Federal Air Pollution-Control Policy

Chapter 15 Federal Air Pollution-Control Policy Multiple Choice Questions 1. Human activity can disrupt ____________.

A. the troposphere B. the stratosphere C. the troposphere and the stratosphere D. the troposphere but not the stratosphere Difficulty: Easy

2. In the last 50 years, air pollution problems have become more serious due to A. the scale of airborne emissions.

B. the variety of airborne emissions.

C. the diverse set of damages caused by airborne emissions.

D. all of the above.

Difficulty: Easy

3. Temperature inversions over urban areas are an example of A. meteorological phenomena confounding the link between emissions and ambient air quality.

B. episodic emissions causing damage to air quality.

C. continuous emissions causing damage to air quality.

D. accidental emissions causing damage to air quality.

Difficulty: Easy

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Chapter 15 – Federal Air Pollution-Control Policy

4. Annual expenditures for air pollution control in the U.S. have ______ since the 1970s.

A. decreased B. increased C. remained steady D. fluctuated Difficulty: Easy

5. National emissions for major air pollutants in the U.S. have _______since the 1980s.

A. decreased B. increased C. remained steady D. fluctuated Difficulty: Easy

6. In order to understand whether pollution control policies have been effective, a __________ analysis examining what emissions were compared to what they would be if policies had not been pursued must be performed.

A. pre-test/post-test B. with/without C. before/after D. today/tomorrow Difficulty: Easy

7. A with/without analysis of the impact of the 1990 Clean Air Act reveals that several categories of air pollution have__________ as a result of the legislation.

A. stayed the same B. increased C. decreased D. experienced indeterminate change Difficulty: Easy

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Chapter 15 – Federal Air Pollution-Control Policy

8. When a with/without analysis reveals increased levels of ambient air quality, we can be assured ______________.

A. that the amount of money spent on air pollution control bought the highest possible impact.

B. that we would have better air quality without the policy.

C. that the change in air quality is a result of the policy.

D. all of the above Difficulty: Easy

9. The Clean Air Act of 1970 introduces ____________ over air-pollution matters introducing uniform ambient standards, technology based effluent standards, and stricter emissions standards for automobiles.

A. state control B. federal control C. municipal control D. U.S. Army Corp of Engineers control Difficulty: Easy

10. The 1977 Clean Air Act Amendments differentiated between areas labeled ____________ and _______________.

A. PSD areas; nonattainment areas B. Prevention of Significant Deterioration Areas; attainment areas C. urban areas; rural areas D. new industrial development areas; PSD areas Difficulty: Easy

11. Between the 1977 Clean Air Act Amendments and the 1990 Clean Air Act, a major policy innovation took place when the EPA allowed A. emissions trading among sources of pollution.

B. zero tolerance of air pollutants from a particular source.

C. emission reduction credits to be traded both between firms and intra-firm.

D. both A and C. Difficulty: Easy

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Chapter 15 – Federal Air Pollution-Control Policy

12. In setting national ambient air quality standards (NAAQS), the 1970 CAA set two levels of standards for criteria pollutants: A. federal standards and state standards.

B. state standards and municipal standards.

C. primary standards and secondary standards.

D. technology-based effluent standards and ambient quality standards.

Difficulty: Easy

13. Primary standards that were established in the 1970s CAA are concerned with A. levels of pollution that threaten the public welfare.

B. levels of pollution that threaten the public health.

C. efficiency standards that equate marginal damages with marginal abatement costs.

D. thresholds.

Difficulty: Easy

14. Thresholds are levels of pollutants A. below which the cost of abatement is zero.

B. below which the EPA cannot detect emissions.

C. below which damages are minimal or non-existent.

D. below which the source of the pollutant cannot be detected.

Difficulty: Easy

15. Differentiated control of pollutants allows for different technology-based effluent standards between A. new and existing sources of pollution.

B. nonattainment regions and prevention of significant deterioration regions.

C. both A and B. D. lowest achievable emission rates (LAER) and best available control technology (BACT).

Difficulty: Easy

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Chapter 15 – Federal Air Pollution-Control Policy

16. New source bias is justified on the basis of A. efficiency.

B. that it costs more for older sources to retrofit than for new sources to adopt technology.

C. cost.

D. all of the above.

Difficulty: Easy

17. New source bias is defined as A. not allowing old sources to increase production so that new sources can enter the market.

B. holding older sources of pollution to stricter standards than new sources.

C. not allowing new sources into the industry for fear of increased emissions.

D. holding new sources of pollution to stricter standards than existing sources.

Difficulty: Moderate

18. New source bias creates incentives for A. older firms to hold on to older plants.

B. slowing the rate of adoption of new pollution abatement technology.

C. intense battles over how regulators define “new” versus “existing” plants.

D. all of the above Difficulty: Moderate

19. The purpose of a cap-and-trade program would be to A. increase nitrogen oxides and decrease sulfur oxides.

B. reduce mercury emissions.

C. increase organic compounds.

D. all of the above.

Difficulty: Moderate

20. In the United States SO2 program, emissions permits are tradable and managers of a particular plant can A. emit at or below the plant’s allowable level and hold on to any excess permits B. emit below the plant’s allowable level and sell off any excess permits C. emit above the plant’s allowable level and purchase permits to cover the excess emissions D. all of the above are allowable options Difficulty: Moderate

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Chapter 15 – Federal Air Pollution-Control Policy

22. The role of the EPA in a cap-and-trade air quality program A. is to keep track of emission permit trades.

B. monitor emissions.

C. reduce the number of discharge permits.

D. all of the above.

Difficulty: Easy

Figure 1

22. Refer to Figure 1. Federal mobile source air pollution control policies have focused almost exclusively on A. emissions per mile.

B. total quantity of emissions.

C. number of vehicles.

D. average miles traveled.

Difficulty: Easy

23. Refer to Figure 1. Although, the U.S. has made significant progress in decreasing emissions per mile, ______________ continues to grow.

A. total quantity of emissions B. number of vehicles C. average miles traveled D. both B and C. Difficulty: Easy

24. The US new car certification program is a type of A. technology forcing standard B. technology based effluent standard C. fleet turnover ratio standard D. stationary source control standard Difficulty: Easy

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Chapter 15 – Federal Air Pollution-Control Policy

25. Because new car certification programs can only control emissions from new cars, the federal government required that states with severe air pollution problems initiate programs that inspect individual cars. These programs are called A. warranty programs.

B. inspection and maintenance (I&M) programs.

C. old car certification programs.

D. best management practices.

Difficulty Easy

26. The CAFE standards in the U.S. were originally introduced in order to A. reduce petroleum imports into the U.S. B. reduce the amount of greenhouse gasses in the U.S. C. be a limit to domestic polluters.

D. help consumers save on gasoline expenses.

Difficulty: Moderate

27. Even though the purchase of a new, more efficient car could save a consumer money in the medium to long run, consumers have shown reluctance to make the investment and this is called the A. behavioral economics.

B. energy efficiency gap.

C. rebound effect.

D. discount rate.

Difficulty: Easy

28. Some of the reasons that the energy efficiency gap exists is A. consumers have a high discount rate for future savings in energy costs.

B. consumers may believe that the future energy and cost savings are uncertain.

C. consumers may lack access to the credit or liquidity required to purchase new energy efficient cars.

D. all of the above.

Difficulty: Easy

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Chapter 15 – Federal Air Pollution-Control Policy

29. Because of the existence of the energy efficiency gap, many economists recommend _________ to reduce mobile source emissions.

A. increased taxation on gasoline B. stricter CAFE standards C. decreased taxation on new vehicles D. all of the above Difficulty: Moderate

30. EPA policies with regard to mobile source emissions include A. reformulated fuel.

B. establishing emissions charges for new cars.

C. reducing total miles driven in urban areas.

D. both A and B. Difficulty: Easy

31. Except for carbon dioxide, from 2008 to 2017 total emissions of all major air pollutants in the United States have A. increased B. decreased C. not changed D. not been measured

32. Automobile tailpipe emissions have been enforced primarily through A. a cap and trade program B. a new car certification program C. higher gasoline taxes D. requirement to shift to electric vehicles

33. The EPA’s power to institute policy to control greenhouse gas emissions was confirmed by A. the state legislature of California B. the U.S. Supreme Court C. automobile manufacturers D. state departments of environmental protection

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Chapter 15 – Federal Air Pollution-Control Policy

34. According to some principles of behavioral economics, the “energy-efficiency gap” implies that A. consumers are more likely to favor trucks over cars B. consumers often will not buy fuel-efficient vehicles that will save them money in the long run.

C. consumers react quickly to perceived mileage differences among cars D. consumers have no way of knowing about mileage differences among cars

35. The primary way the U.S. is addressing the climate impact of vehicles is through A. the national CAFE programs B. laws requiring cleaner cars C. laws to lower average speed limits D. laws to restrict the purchase of trucks

36. The first successful cap and trade program in the U.S. was A. the program to reduce SO2 emissions B. the program to reduce CO2 emissions C. the program to reduce particulate matter emissions D. the program to reduce volatile organic compound emissions

37. The CAFE program is a requirement that A. people live within five miles of a coffee shop B. all cars achieve a certain mileage per gallon C. cars produced by each manufacturer on average attain a certain mileage D. only trucks achieve a certain mileage per gallon

38. The primary means for controlling major industrial air pollutants in the U.S. has been A. prohibition of certain airborne pollutants B. a moral approach to reduce airborne emissions C. emissions charges (taxes) D. technology-based emissions standards

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Chapter 15 – Federal Air Pollution-Control Policy

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances

Chapter 16 Federal Policy on Toxic and Hazardous Substances Multiple Choice Questions 1. Trying to reduce the amounts of hazardous material that need disposal by either recycling residuals, or by shifting technologies and operations so that the amount of residuals generated by firms is reduced is known as ________.

A. waste reduction B. recycling C. chemical treatment D. CERCLA

Difficulty: Easy.

2. Hazardous and toxic materials have characteristics that present unique challenges for monitoring and control, such as A. they are found everywhere in the modern economy.

B. the sheer number of them leads to difficulty in being informed about the levels of danger.

C. the quantity used can be very small, leading to difficulty in monitoring.

D. all of the above.

Difficulty: Easy.

3. The policy environment governing hazardous and toxic substances is A. the sole responsibility of the EPA. B. subject to federal laws, state laws, and local public agency advocacy and public opinion.

C. straightforward with a long and consistent history and precedent.

D. not overseen by the EPA because most toxic substances are not released to the natural environment.

Difficulty: Easy.

4. Rachel Carson’s book, Silent Spring (1962), documented ecosystem damage caused by A. the experiences of Love Canal, where homes were exposed to hazardous waste.

B. a chemical spill in the Elk River in Charleston, West Virginia.

C. the chemical spill in Bhopal, India.

D. DDT, a popular pesticide.

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances

Difficulty: Easy

5. If acceptable levels of exposure to chemicals were determined by ‘balancing’, regulators would attempt to A. balance the demand for chemicals with the supply of chemicals.

B. balance the price of chemicals with the cost of producing chemicals.

C. balance the costs of controlling the chemicals with the damages that the chemicals caused.

D. all of the above.

Difficulty: Easy

Cost-Benefit Balancing in Regulating Exposure to a Chemical

Curve A

Curve B

Axis B

Exposure to chemical

6. Refer to the figure above. In the graph above, Curve A would be labeled A. Marginal Control Costs (of reducing the levels of exposure).

B. Marginal Benefits (of higher or lower health risks when exposure changes).

C. Marginal Demand Curve (for reduced health risks).

D. Marginal Willingness to Pay Curve (for reduced health risks).

Difficulty: Moderate

7. Refer to the figure above. In the graph above, Curve B would be labeled A. Marginal Control Costs (of reducing the levels of exposure).

B. Marginal Benefits (of higher or lower health risks when exposure changes).

C. Marginal Demand Curve (for reduced health risks).

D. Marginal Willingness to Pay Curve (for reduced health risks).

Difficulty: Moderate

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances

8. Refer to the figure above. In the graph above, the vertical axis (Axis) would be labeled A. $.

B. time or distance.

C. units of reduced health risk.

D. abatement units (metric tons, dissolved oxygen, parts per million).

Difficulty: Easy

9. Many object to the balancing approach for regulating chemicals because A. scientific results are often too weak to show benefits and costs clearly.

B. matters of life and death are moral issues, and should be treated as such.

C. politicians, not economists, should determine the values that society places on outcomes.

D. all of the above.

Difficulty: Easy

10. TSCA differentiates between _______ and _________ chemicals, regulating the latter more stringently than the former.

A. solid; liquid B. metal based; non metal based C. existing; new D. industrial; household Difficulty: Easy

11. In the decision of whether or not to regulate a chemical, the question of which party has the responsibility of providing information to decide a chemical’s safety level is called the A. toxic substances control act.

B. burden of proof.

C. ‘catch 22’.

D. balancing decision.

Difficulty: Easy

Management of workplace exposure

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances

12. Refer to the figure above. MC1 represents marginal costs for firm 1, while MC2 represents marginal costs for firms 2. The fact that MC1 lies above MC2 indicates A. the socially optimal level of risk is higher for firm 1.

B. the marginal cost of reducing risk is higher for firm 1.

C. both A and B. D. neither A nor B. Difficulty: Easy

13. Refer to the figure above. MC1 represents marginal costs for firm 1, while MC2 represents marginal costs for firms 2. If a common standard for workplace exposure were set at r1 A. Firm 2 experiences efficient control and Firm 1 experiences a risk that is too low.

B. Firm 1 experiences efficient control and Firm 2 experiences a risk that is too low.

C. Firm 1 experiences efficient control and Firm 2 experiences a risk that is too high.

D. Firm 1 experiences a risk that is too high and Firm 2 experiences efficient control of risk.

Difficulty: Moderate

14. Refer to the figure above. The marginal damages curve slopes upward because A. higher risks are associated with higher marginal damages, such as negative health effects.

B. the cost of controlling damages increases as the risk of exposure increases.

C. total damages increase as the risk of exposure increase.

D. the technology used to control the damages varies along the curve.

Difficulty: Moderate

15. Refer to the figure above. If the labor market works efficiently and workplace standards are managed such that each firm manages risk individually (there is not a set standard) then A. the wages in high exposure jobs will be lower than those high exposure risk jobs.

B. the wages in high and low risk jobs will be equal, which is inefficient.

C. the wages in low exposure risk jobs will be higher than those in high exposure risk jobs.

D. the labor. market will compensate workers experiencing higher risk with higher wages.

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances

Difficulty: Moderate

16. Recent technological change in chemicals has led to the development of chemicals that involves the production and use of substances using extremely small particles called A. radioactive waste.

B. nanotechnology.

C. ubiquitous.

D. chlorofluorocarbons.

Difficulty: Easy

17. When the precautionary principle is introduced into the regulation of chemicals it A. introduces caution into public decisions where substantial damages may be unknown.

B. re-examines where the burden of proof should lie.

C. scrutinizes serious threats that involve irreversible damage regardless of scientific certainty.

D. all of the above.

Difficulty: Easy

18. When the economics of pest resistance is examined, it becomes clear that A. those who are attempting to eliminate pests will overuse pesticides and contribute to pests becoming resistant.

B. those who are attempting to eliminate pests will be incentivized to use the socially efficient amount of pesticide.

C. those who are attempting to eliminate pests will be incentivized to underuse pesticides because the elimination of pests is a public good.

D. those who are regulating pest elimination are interested in increasing resistance to pesticides in the target population.

Difficulty: Easy

19. Federal policy on toxins began with emissions control policies that focused on A. criteria pollutants in airborne emissions.

B. biochemically oxygen demanding (BOD) waste in waters.

C. toxic emissions stemming from industrial operations and household sources.

D. both A and B. Difficulty: Moderate

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances

20. Each of the following is a primary domestic pollution control statute for toxic emissions in the US except A. Clean Air Act (amended 1970, 1977, 1990).

B. Emergency Planning and Community Right to Know Act (1986).

C. Stockholm Convention on Persistent Organic Pollutants (POPS) (2001).

D. Safe Drinking Water Act (amended 1986, 1996).

Difficulty: Moderate

21. The primary regulatory approach to regulating toxic emissions has been to use technology-based effluent standards. All of the following are technology-based effluent standards except A. Best Available Technology (BAT).

B. Maximum Achievable Control Technology (MACT).

C. Reasonably Available Control Technology (RACT).

D. Most Often Applied Technology (MOAT).

Difficulty: Easy

22. Policy makers have begun to regulate toxic emissions by ‘moving back up the line’ and encouraging waste reduction. All of the following are effective incentives to encourage waste reduction except A. emissions charges.

B. deposit refund systems.

C. increasing transparency about the release of toxic materials.

D. regulations that dictate particular technology choices for firms using toxic substances.

Difficulty: Easy

23. The reason that increasing the price of waste disposal is often an ineffective way to reduce hazardous waste is A. competition in the waste removal industry keeps prices below effective incentive levels.

B. hazardous waste is often not subject to disposal as it never leaves the firm premises.

C. hazardous waste removal firms are not subject to regulations.

D. firms are unmotivated by disposal charges and do not search for ways to reduce the quantities of waste requiring disposal.

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances Difficulty: Easy

24. Hazardous waste generation in the US A. is spread fairly evenly across the states.

B. is concentrated in the industrial Midwest.

C. is concentrated in oil and gas producing states (Alaska, Texas, the Dakotas).

D. is not spread evenly throughout the United States.

Difficulty: Easy

25. A 2005 EPA survey reveals that the majority of hazardous waste is disposed of through A. burning.

B. injection wells.

C. recovery during recycling operations.

D. off-site disposal facilities.

Difficulty: Easy

26. In managing the regulation of hazardous waste, federal policy has been aimed at two problems A. storage of current wastes and transportation of current wastes.

B. clean up of previous disposal sites; and storage, transportation and disposal of current wastes.

C. transportation and disposal of current wastes and clean-up of previous disposal sites.

D. transportation and disposal of current wastes; and clean-up of current storage sites.

Difficulty: Moderate

27. As a part of the National Contingency Plan (NCP), the National Priorities Plan (NPL) is a state-federal effort to earmark a list of ranked sites for clean-up that has experienced hazardous pollution. The priorities are established by taking into account A. types of hazardous material at the site.

B. quantities of hazardous materials at the site.

C. the possibility of human exposure to the site and the materials.

D. all of the above.

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances Difficulty: Easy

28. The establishment of Brownfields sites A. encourages developers to consider theses sites by relaxing potential liability associated with previous contamination.

B. allows for funding assistance to assess or ameliorate contamination problems on the site.

C. distinguishes the difference between Superfund sites and sites where light to moderate. contamination is suspected or confirmed.

D. all of the above.

Difficulty: Easy

29. The major US law that has established a liability provision for past damages done to U.S. natural resources is A. the National Contingency Plan (NCP).

B. the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).

C. the Resource Conservation and Recovery Act (RCRA).

D. the Emergency Planning and Community Right to Know Act. Difficulty: Easy

30. Environmental justice is A. a particular way of examining the distributional effects of pollution and contamination.

B. a program to compensate minorities and the poor for exposure to environmental hazards.

C. part of CERCLA legislation that holds polluters responsible for natural resource damages.

D. a specific bill associated with the Emergency Planning and Community Right to Know Act that allows citizens to sue industrial polluters on behalf of the government.

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances Difficulty: Easy

31 The 2016 Amendments to the TSCA sought to change the criterion for regulation to A. a strictly risk-based criterion.

B. a more balancing criterion.

C. a criterion established strictly by the industry.

D. a benefit cost approach.

Difficulty: Easy

32. The 2016 Lautenberg Act A. requires risk analysis.

B. mandates testing of existing chemicals.

C. tightens TSCA. D. all of the above.

Difficulty: Easy

33. In response to the Low-Level Radioactive Waste Policy Act of 1980, A. almost every state now has an active LLW disposal site.

B. interstate compacts exist between most states.

C. ten interstate compacts have formed.

D. all wastes are disposed in approved lands.

Difficulty: Easy

34. In the United States, there are more than _____ sites where massively contaminated soil, water, structures, and equipment pose serious health threats to nearby people and ecosystems.

A. 100 B. 200 C. 300 D. 500 Difficulty: Easy

35. Nanomaterials present a potential environmental challenge because A. the Clean Air Act may not apply to nanomaterials B. risks are uncertain C. external costs may be overlooked D. all of above

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Chapter 16 – Federal Policy on Toxic and Hazardous Substances

36. The primary approach to regulating toxic emissions is A. Total maximum daily load (TMDL) B. Technology based effluent standards (TBES) C. to provide subsidies to substitute natural, organic products D. to institute a cap and trade program 37. Hazardous waste policy is overseen by A. the Environmental Protection Agency (EPA) solely B. the Department of Transportation (DOT) solely C. the EPA and the DOT D. the EPA, the DOT, the Department of Defense (DOD), and the states 38. A reduction in spending by the EPA to clean-up Superfund sites (CERCLA) A. fits because Superfund sites are a low-budget item B. will not affect the housing market around Superfund sites C. is an environmental justice issue D. reduces the liability for responsible parties

39. One way to improve management of toxics is A. to emphasize waste reduction B. to avoid impact of materials substitution C. to reduce command-and-control measures D. to set a time limit for liability lawsuits

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Chapter 17 – State and Local Environmental Issues

Chapter 17 State and Local Environmental Issues Multiple Choice Questions 1. ________ content standards require that all materials-using products manufactured or sold contain some specified percentage of ________.

A. Maximum; recycled material B. Minimum; recycled material C. Maximum; virgin material D. Minimum; virgin material Difficulty: Easy

2. Environmental federalism refers to A. whether environmental regulations should be established at a national level B. whether environmental regulation enforcement should be decentralized C. the establishment of the EPA in the 1970s D. whether all states and municipalities should be subject to the same effluent standards Difficulty: Easy

3. The US Constitutional does not allow for A. state environmental policy to preempt federal environmental policy B. states to develop specific policies where the federal authorities remain silent C. decentralized actions to protect the environment D. state enforcement of federal environmental policies Difficulty: Easy

4. With regard to air pollution, states have the responsibility of establishing State Implementation Plans (SIPs) which are A. plans to set state standards for ambient quality B. state agencies that have been created to monitor interstate pollution C. plans of action toward attaining national ambient standards for air quality D. plans to lobby the federal government for more stringent interstate standards Difficulty: Easy

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Chapter 17 – State and Local Environmental Issues

5. Many states have enacted their own Superfund laws to supplement the federal actions included in the A. National Contingency Plan (NCP) B. Clean Air Act (CAA) C. Resource Conservation and Recovery Act (RCRA) D. Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) Difficulty: Easy

6. California has been a lead state in the area of policy innovation, exemplified by A. the initial banning of the pesticide DDT B. tradable emissions permits to control airborne emissions C. principles included in the Strip Mining Reclamation Act D. ideas included in the Toxics Release Inventory program Difficulty: Easy

7. Municipal Solid Waste (MSW) consists of trash or garbage from A. homes.

B. businesses.

C. institutions.

D. all of the above.

Difficulty: Easy

8. The materials balance equation can be written in all of the following forms except A. TM = VM - RM B. VM = TM - RM C. VM = TM ( 1- r) D. TM = VM + RM Difficulty: Moderate

9. The use of virgin materials can be reduced by A. increasing the overall rate of materials use (TM) B. increasing the rate of reuse (r) C. decreasing the overall rate of recycled materials use (RM) D. all of the above Difficulty: Moderate

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Chapter 17 – State and Local Environmental Issues

10. Federal water-pollution law, incorporating technology based effluent standards, works through A. a permitting system B. CAFÉ standards C. a single stream recycling system D. a pay as you throw (PAYT) system Difficulty: Easy

11. There are often economic efficiency trade-offs between centralized and decentralized environmental regulation. When emissions from sources in each state only produce damages within that state, _________ is clearly more efficient.

A. centralized policy B. de-centralized policy C. neither policy approach D. either A. or B. Difficulty: Easy

12. There are often economic efficiency trade-offs between centralized and decentralized environmental regulation. When emissions from each state mix uniformly with emissions from other states so that damages affect each state equally, _________ is clearly more efficient.

A. centralized policy B. de-centralized policy C. neither policy approach D. either A. or B. Difficulty: Easy

13. Federal water law requires that states establish ___________ in various bodies of water within their boundaries.

A. pollution free zones B. technology based effluent standards C. ambient water quality standards D. either A. or B. Difficulty: Easy

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Chapter 17 – State and Local Environmental Issues

14. Because states compete to attract businesses, some believe that there will be a ‘race to the bottom’ resulting in lax state policies regarding environmental regulation. Most empirical evidence to date suggests that A. state policies are indeed more lax than federal policies B. the ‘race to the bottom’ has not taken place C. states have not produced their own environmental policies D. businesses do not consider state policies when deciding where to locate Difficulty: Easy

15. Over the past last 50 years, the amount of MSW that is recycled has A. decreased dramatically B. remained relatively constant C. increased slightly D. increased dramatically Difficulty: Easy

16. In the most recent past, most of the urban municipal solid waste in the U.S. was disposed ___________.

A. through recycling B. through incineration C. in landfills D. in other countries Difficulty: Easy

17. The materials balance equation indicates that one way to reduce municipal solid waste is to reduce total materials used. Total materials used can be reduced by A. reducing economic activity B. reducing materials intensity C. limiting trade with China D. either A or B. Difficulty: Easy

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Chapter 17 – State and Local Environmental Issues

18. One way to reduce materials intensity in the production of goods is A. to a shift away from the consumption of tangible goods, but toward services B. reducing the amount of packing in consumer products C. increasing online billing and payments D. all of the above Difficulty: Easy

19. Voluntary recycling programs began in the______ and the first one was in _________.

A. 1970s; Oregon B. 1950s; California C. 1950s; Oregon D. 1970s; California Difficulty: Easy

20. In order to achieve socially efficient levels of recycling in firms, the goal would be to equate _____________ across industries and materials.

A. marginal recycling costs B. marginal tax rates C. marginal cost of virgin materials D. marginal emissions Difficulty: Easy

21. The European Commission adopted a mandatory directive for electronic and electrical equipment requiring producers to assume responsibility for their e-waste throughout the lifecycle of the product. This is an example of a A. producer fee system B. producer take-back program C. producer deposit refund program D. consumer deposit refund program Difficulty: Easy

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Chapter 17 – State and Local Environmental Issues

22. ‘Takings’ problems refer to the use of eminent domain which allows the US government to take property from private citizens for a public purpose while providing just compensation.

In contrast, a regulatory taking does not involve a physical taking of the property but may A. reduce the value of the property due to restrictions on its use B. transfer ownership temporarily to the EPA C. distribute ownership shares to government agencies D. eliminate the ability to sell the property Difficulty: Easy

23. The largest impairment to water quality is now nonpoint source pollution and ________ programs are paramount for controlling these emissions.

A. federal B. state C. municipal D. international cooperative Difficulty: Easy

24. Regulations to control mercury emissions from power plants have been in contention for well over a decade at the _______ level A. federal B. state C. municipal D. international Difficulty: Easy

25. The ability of a municipality to send solid waste to a landfill is affected by A. weather B. taxation C. the scarcity of sites willing to accept these wastes D. recycling programs Difficulty: Easy

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Chapter 17 – State and Local Environmental Issues

26. Which of the following affect a firm’s incentive and ability to replace virgin material in the production with recycled materials?

A. technology available to sort materials for recycling B. the transportation of materials to be recycled C. the reprocessing recycled materials D. all of the above Difficulty: Easy

27. A tax on virgin materials charged to all manufacturing firms would A. lead to decreased recycling B. lead to increased recycling in a way that would not satisfy the equimarginal principle C. lead to increased recycling in a way that satisfies the equimarginal principle D. lead to uncertain results with no guarantee of satisfying the equimarginal principle Difficulty: Moderate

28. Single stream recycling refers to A. water pollution control programs that focus on single bodies of water B. recycling of contaminated water with release into a single stream C. a system of recycling that returns all recycled material to a single user D. a system where recyclable items are collected from consumers in a single container and sorted at the recycling facility Difficulty: Easy

29. In the materials balance equation written in the following form with VM = TM (1-r), r is defined as A. the rate of re-use of materials B. RM/TM C. the materials intensity of production D. both A and B. Difficulty: Moderate

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Chapter 17 – State and Local Environmental Issues

30. During the 1950s and the 1960s there was no strong ______ environmental policy.

During the 1970s control began with initiation of __________ environmental policy.

A. federal; federal B. federal; state C. state; state D. state; federal Difficulty: Easy

31. Single stream recycling shifts the cost of recycling to A. the consumer.

B. the industry as a whole.

C. the waste management facility.

D. all parties equally.

Difficulty: Easy

32. If the change to single-stream recycling causes an increase of recycling loads being contaminated with trash, the amount of residuals discharged A. increases B. decreases C. does not change D. cannot be determined 33. The change to single-stream recycling causes the consumer cost of recycling to A. increase B. decrease C. not change D. cannot be determined 34. In the United States, municipal solid waste policy is governed A. at the federal level only B. at the state level only C. at the federal and local level D. at the state and local level 35. With PAYT programs, the incentive to recycle or reuse A. increases B. decreases C. does not change D. cannot be determined

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Chapter 17 – State and Local Environmental Issues

36. Take-back programs lead to goods or parts of goods being A. returned to where a consumer purchased the good B. returned to the original manufacturer of the good C. exchanged among manufacturers of the good or inputs D. all the above

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Chapter 18 – The Global Environment

Chapter 18 The Global Environment

Multiple Choice Questions 1. With no green house gases at all, the earth would be _______ for human life.

A. more comfortable B. uninhabitable C. 10 degrees cooler D. more sustainable Difficulty: Easy

2. Which of the following events or activities have contributed to the increase in global green house gasses?

A. deforestation B. the industrial revolution C. increased use of fossil fuels D. all of the above Difficulty: Easy

3. CO2 is an important of th greenhouse gas that we have in our atmosphere. From 2000 to 2016, emissions of CO2 have been _______ in the U.S. and __________ globally.

A. increasing; increasing B. increasing; decreasing C. decreasing; increasing D. decreasing; decreasing Difficulty: Easy.

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Chapter 18 – The Global Environment

4. There is some evidence that CO2 emissions have been contained within the United States and Europe. One of the main reasons for the decline is thought to be A. the 2008 recession.

B. new legislation.

C. smaller automobiles.

D. increased recycling.

Difficulty: Easy

5. The rate of heating due to global warming is expected to be about ______ per decade.

A. .05° C per decade B. .5° C per decade C. 5° C per decade D. none of the above Difficulty: Easy

6. Higher levels of atmospheric CO2 are expected to have a substantial impact on ecosystems, including individual plant and animal species, not just because of the magnitude of change but also because of ________________.

A. reason for the change B. location of the change C. predictability of the change D. the rate of change Difficulty: Easy

7. One of the biggest impacts of global climate change will be in forestry and agriculture. The agricultural impacts will hit ____________ harder.

A. developed nations B. the western hemisphere C. developing nations D. the southern hemisphere Difficulty: Easy.

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Chapter 18 – The Global Environment

8. There are two fundamental paths to address the problems of global climate change: _________ and/or __________.

A. regulation; elimination B. mitigation; adaptation C. market; legal D. global; local Difficulty: Easy

9. As a specific approach to reducing the impact of green house gasses, mitigation refers to A. taking steps to reduce emissions today to delay or reduce global temperature increases.

B. new legislation that allows for lawsuits for those who do not comply with emission limits.

C. adjustments to reduce the negative impacts of temperature increases.

D. protecting specific key resources from temperature increases.

Difficulty: Easy

10. As a specific approach to reducing the impact of green house gasses, adaptation refers to A. taking steps to reduce emissions today to delay or reduce global temperature increases.

B. new legislation that allows for lawsuits for those who do not comply with emission limits.

C. adjustments to reduce the negative impacts of temperature increases.

D. protecting specific key resources from temperature increases.

Difficulty: Easy

11. The primary means of reducing warming associated with the Greenhouse effects is/are A. reducing the output of GHG. B. augmenting the GHG absorbing capacity of the natural world.

C. developing methods for future generations to minimize the impact of temperature increases.

D. both A and B. Difficulty: Easy

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Chapter 18 – The Global Environment

12. The quantity of CO2 emissions depends on the following factors A. population; GDP per capita.

B. energy use per person; CO2 emissions per goods sold.

C. energy efficiency; CO2 emissions per energy used.

D. both A and C. Difficulty: Easy

13. In recent years, the most important factors in reducing CO2 emissions have beenA. population and GDP per capita.

B. energy use per person and CO2 emissions per goods sold.

C. energy efficiency and CO2 produced per energy used.

D. all of the above.

Difficulty: Easy

14. The United States and other countries have a long history of using __________. This approach will increase the cost of controlling Greenhouse Gasses.

A. command and control policies B. decentralized policies C. incentive based strategies D. market trading systems Difficulty: Easy

15. Using _______to control greenhouse gasses are likely to be more expensive than _____.

A. policy; informal agreements B. technology or emissions based standards; incentive based strategies C. fines; subsidies D. decentralized; centralized Difficulty: Easy

16. Afforestation is an example of _________________.

A. an emission reduction method B. augmenting the CO2 absorption capacity of the ecosystem C. a technology standard D. a CO2 capture and storage method Difficulty: Easy

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Chapter 18 – The Global Environment

17. When there are substantial differences among sources and technologies in terms of the costs of reducing greenhouse gasses, the use of __________ is more cost effective than the use of _____________.

A. incentives; fines B. fines; incentives C. incentive based policies; command and control policies D. command and control policies; incentive based policies Difficulty: Easy

18. Two incentive based programs that might be considered to control GHG are A. emissions standards; technology based standards.

B. cap and trade programs; emission taxes/charges.

C. bag and tag programs; cap and trade programs.

D. shifting away from meat consumption; CAFÉ standards.

Difficulty: Easy

19. Cap and trade is a _____ based plan. A limit is placed on emissions and prices are established in emissions permit markets. Emission taxes are a _______ based policy. A fee on emissions is set and the quantity of emissions is adjusted as polluters react to the fee.

A. price; quantity B. quantity; price C. technology; behavior D. behavior; technology Difficulty: Easy

20. Global plans for emissions reductions require that we follow a strategy for assigning responsibility for emission reduction. If global policy assigns carbon emissions reductions according to total emissions, the largest reductions, as of 2020, would have to come from __________.

A. India B. China C. France D. the United States Difficulty: Easy

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Chapter 18 – The Global Environment

21. When discussing economic adaptation, examples of adaptation include A. increasing the markets.

B. investing in flood control.

C. focusing on wind power vs. mass transit networks.

D. addressing immigration policies.

Difficulty: Easy

22. Principles of the Paris Agreement include A. specific goals for energy efficiency.

B. commitment to GHG emissions.

C. commitment to offer INDCs. D. quantitative targets of GHG reductions.

Difficulty: Easy

23. The quantity of CO2 depends on the interaction A. wealth.

B. GDP per capita.

C. population.

D. both B and C. Difficulty: Easy

24. The Kyoto Protocol came into force in 2005 and was the first ___________ effort to address GHG reduction and control.

A. national B. international C. private D. European Difficulty: Easy

25. Calculations of the social cost of carbon can be used to A. set carbon taxes to achieve a socially efficient level of pollution.

B. assist with regulatory impact analysis.

C. guide regulatory decisions by the EPA. D. all of the above.

Difficulty: Easy

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Chapter 18 – The Global Environment

26. In order to preserve biodiversity, the United States has passed the Endangered Species Act. Although this act has had some success in preserving individual endangered species, it is relatively ineffective at preserving _________, because this requires preservation of a relationship among a large number of species.

A. plant species B. diversity C. threatened animals D. genetics Difficulty: Easy

27. Effective maintenance of biodiversity requires the maintenance of A. habitats.

B. sanctuaries.

C. reserve parks.

D. all of the above.

Difficulty: Easy

28. One policy solution to maintaining species and biodiversity is to A. establish a more complete system of property rights over genetic resources.

B. establish a trap and trade program similar to cap and trade programs.

C. increase and expand the Endangered Species Act. D. increase the lands in the US that are held in the public domain.

Difficulty: Easy

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Chapter 18 – The Global Environment

29. The Kyoto Protocol has been criticized for A. setting quantitative limits on GHG without specific regard to future increases in global temperatures.

B. focusing on short term goals without consideration of long-term needs.

C. insufficient attention to implementation and enforcement.

D. all of the above.

Difficulty: Easy

30. The reason it is so difficult to seek solutions to protect the global environment is that A. nations are impacted by global pollution differently and therefore have different incentives to protect global resources.

B. nations contribute to global pollution at different levels and therefore require different incentives to alter their practices.

C. there is a great deal of uncertainty regarding the impact of emissions on shared global resources.

D. all of the above.

Difficulty: Easy

31. According to recent statistics from the World Resources Institute, emissions are increasing in the A. United States.

B. European Union.

C. India.

D. all of the above.

Difficulty: Easy

32. “Decarbonization” means A. using less energy per household B. reducing CO2 emissions per unit of energy used C. reducing energy used per average household D. producing cars that get better fuel mileage

33. The Paris Agreement A. requires countries to reduce greenhouse gas emissions equally B. applies only to developed countries C. allows countries to set their own greenhouse gas reduction targets D. was negotiated in New York

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Chapter 18 – The Global Environment

34. The best way to preserve biological diversity is to A. ban hunting B. protect habitat C. ban trade in animals D. work to discover new species

35. The social cost of carbon is A. the external costs of one additional ton of greenhouse gases released B. the marginal costs of reducing a ton of greenhouse gas C. different in different geographical locations D. impossible to estimate

36. Building more flood resistant housing is a case of A. spending money unwisely B. required by the Paris Agreement C. mitigation D. adaptation

37. Current incentive-based programs for reducing greenhouse gases includes A. mileage requirements on new cars B. the European Trading Program C. shifting to nuclear power D. a combination of solar and wind power

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Chapter 19 – International Environmental Agreements

Chapter 19 International Environmental Agreements

Multiple Choice Questions 1. The available enforcement mechanisms are ________ at the international level compared to national level.

A. much stronger B. much weaker C. essentially the same D. absent Difficulty: Easy

2. International agreements regarding the use of natural resources _________________.

A. are relatively new and have only been in existence for the last half century B. began when countries sought to agree on navigation rules to cover ocean passages C. have been virtually non-existent D. both A and C Difficulty: Easy

3. International agreements come in several forms and environmental agreements have made use of each form. One such form is a convention, which is A. an agreement where countries define a problem and agree to address it, without specifying what actions will take place.

B. an agreement where countries define a problem and agree to address it, and detail some of the specific actions that will be undertaken.

C. an agreement where countries define a problem and agree to address it, and detail all of the specific actions that will be undertaken including the signatories and institutions that are responsible for that action.

D. an agreement entered into by only two countries.

Difficulty: Easy.

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Chapter 19 – International Environmental Agreements

4. International agreements come in several forms and environmental agreements have made use of each form. One such form is a protocol, which is A. an agreement where countries define a problem and agree to address it, without specifying what actions will take place.

B. an agreement where countries define a problem and agree to address it, and detail some of the specific actions that will be undertaken.

C. an agreement where countries define a problem and agree to address it, and detail all of the specific actions that will be undertaken including the signatories and institutions that are responsible for that action.

D. an agreement entered into by only two countries.

Difficulty: Easy

5. International agreements come in several forms and environmental agreements have made use of each form. One such form is a treaty, which is A. an agreement where countries define a problem and agree to address it, without specifying what actions will take place.

B. an agreement where countries define a problem and agree to address it, and detail some of the specific actions that will be undertaken.

C. an agreement where countries define a problem and agree to address it, and detail all of the specific actions that will be undertaken including the signatories and institutions that are responsible for that action.

D. an agreement entered into by only two countries.

Difficulty: Easy

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Chapter 19 – International Environmental Agreements

6. Refer to the figure above. The graph represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country A and Country B. MDT represents total damages of A and B. The amount calculated by (MDT -MDA) represents A. inefficiency.

B. emission not covered by a treaty.

C. the socially recognized amount of damages.

D. the damages experienced by a second party, Country B, from Country A’s emissions.

Difficulty: Moderate

7. Refer to the figure above. The graph represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country A and Country B. MDT represents total damages of A and B. If Country A were managing its emissions without regard to the externalities it produces in Country B it would A. regard MAC as the appropriate damages curve.

B. regard MDT as the appropriate damages curve.

C. regard point e1 as the efficient level of emissions.

D. regard point e2 as the efficient level of emissions.

Difficulty: Easy.

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Chapter 19 – International Environmental Agreements

8. Refer to the figure above. The graph represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country A and Country B. MDT represents total damages of A and B. If Country A were managing its emissions with regard to the externalities it produces in Country B it would A. regard MAC as the appropriate damages curve.

B. regard MDA as the appropriate damages curve.

C. regard point e1 as the efficient level of emissions.

D. regard point e2 as the efficient level of emissions.

Difficulty: Moderate

9. Refer to the figure above. The graph represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country A and Country B. MDT represents total damages of A and B. The added abatement costs for Country A to consider damages it causes in Country B and produce at the globally efficient level of emissions is A. area (d + f ).

B. area (g + d + f ).

C. area (c + d + f ).

D. area (a + b + d + f ).

Difficulty: Moderate

10. Refer to the figure above. The graph represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country A and Country B. MDT represents total damages of A and B. The total reduction in damages when Country A considers damages it causes in Country B and produces at the globally efficient level of emissions is A. area (d + f ).

B. area (g + d + f ).

C. area (c + d + f ).

D. area (a + b + d + f ).

Difficulty: Moderate

11. Refer to the figure above. The graph represents a bilateral transboundary pollutant and the economics of reaching an agreement between two countries, Country A and Country B. MDT represents total damages of A and B. The total reduction in damages accruing directly to Country A when it considers the damages it causes in Country B and produces at the globally efficient level of emissions is A. area (f ).

B. area (d + c ).

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Chapter 19 – International Environmental Agreements

C. area (c + d + f ).

D. area (a + b + d + f ).

Difficulty: Moderate

12. The China-Australia Migratory Bird agreement would be considered a A. bilateral agreement.

B. regional agreement.

C. multilateral agreement.

D. both B and C. Difficulty: Easy

13. The Trail Smelter case of 1935 was an important case involving a British Columbian metal refinery that damaged farmlands in the United States. This case set an important international precedent referred to as A. side payments.

B. the victim pays principle (VPP).

C. the polluter pays principle (PPP).

D. the Conference on the Human Environment (“earth summit”).

Difficulty: Easy

14. When two countries engage in an international agreement, they often invoke some element of ___________, which encourages compensation to a polluter who suffers a net financial loss when it limits its emissions to a socially efficient level that considers other damaged parties.

A. technology transfer B. the victim pays principle (VPP) C. the polluter pays principle (PPP) D. the Conference on the Human Environment (“earth summit”) Difficulty: Easy

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Chapter 19 – International Environmental Agreements

15. When countries engage in multilateral agreements regarding pollutants that affect all of them (i.e. acid rain pollution resulting from SO2 emissions), the agreements supply A. global private goods with no opportunity for free riders.

B. global public goods and the possibility of free riders.

C. like benefits to all countries.

D. side payments.

Difficulty: Easy

16. Often countries are negotiating many international issues at the same time that they are considering agreements regarding environmental issues. If they are trying to establish a reputation as ________, their position on an environmental issue may seem inconsistent with self interest.

A. free riders B. hard bargainers C. command and control advocates D. protectors of the public good Difficulty: Easy

17. In order for multinational agreements to be socially efficient, they need to A. apply the same emission reduction goals to each country.

B. apply emission reduction goals according to the equiproportional principle.

C. apply emission reduction goals according to the equimarginal principle.

D. apply emission reduction goals according to per capital emissions.

Difficulty: Easy

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Chapter 19 – International Environmental Agreements

18. Refer to the figure above. Suppose that both Countries A and B receive the same benefit from a decrease in emissions. Both are currently emitting at the uncontrolled level. A uniform reduction of 50 percent would A. cost society area (b + c + d + e).

B. not represent efficiency because there are differences in abatement costs.

C. be equivalent to the results from a transferable discharge program.

D. cost Country B more than Country A. Difficulty: Easy

19. The Montreal Protocol is considered successful because A. it found wide agreement among the nations of the world.

B. it created conditions that satisfied both developed and developing nations.

C. it provided a model for future international agreements.

D. all of the above.

Difficulty: Easy

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Chapter 19 – International Environmental Agreements

20. The Montreal Protocol on Substances that Deplete the Ozone Layer is A. a unilateral agreement requiring phase-out and consumption freezes of ozone depleting substances.

B. a bilateral agreement requiring phase-out and consumption freezes of ozone depleting substances.

C. a multilateral agreement requiring phase-out and consumption freezes of ozone depleting substances.

D. none of the above.

Difficulty: Easy

21. The Montreal Protocol has been _______ and ozone-depleting substances have _______.

A. unsuccessful; remained stable B. unsuccessful; increased C. successful; remained stable D. successful; declined Difficulty: Easy

22. As a partial result of the Montreal Protocol, scientists predict that the hole in the ozone will be substantially_____ by _________.

A. increased; 2070 B. diminished; 2070 C. increased; 2030 D. diminished; 2030 Difficulty: Easy

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Chapter 19 – International Environmental Agreements Government Imposed Production Limitations on the CFC Market

23. Refer to the figure above. Without government intervention, the market depicted would produce ______ units of CFCs at a price of ______.

A. q1; p1 B. q1; p2 C. q2;p1 D. q2;p2 Difficulty: Easy

24. Refer to the figure above. With government imposing restrictions on total production of q2 , the market depicted would produce ______ units of CFCs at a price of ______.

A. q1; p1 B. q1; p2 C. q2;p1 D. q2;p2 Difficulty: Easy

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Chapter 19 – International Environmental Agreements

25. If the government wishes to redistribute the excess profits associated with the quantity restriction (q2), it needs to institute a tax of __________ per unit of CFC. A. a B. (p2-p1) C. p1 D. both A and B. Difficulty: Easy

26. With government imposing restrictions on total production of CFC, the industries that produce products affected by the restriction will experience A. higher marginal costs.

B. reduced prices for their products.

C. steeper demand curves.

D. excess profits.

Difficulty: Easy

27. Similar to the programs for eliminating the use of leaded gasoline, the Montreal Protocol employs ____________ as a mechanism for countries that are unable to meet required production cutbacks.

A. emission standards B. technology standards C. trade allowances of emission reduction credits D. command and control policy Difficulty: Easy

28. Provisions of the Montreal Protocol include A. requirements for individual countries to phase out the production and consumption of designated substances.

B. a multilateral fund where contributions from industrialized countries are used to support the activities from developing countries toward achieving controls assigned in the agreement.

C. a provision for trade restrictions, banning trade in the designated substances between signatories and nonsignatories.

D. all of the above.

Difficulty: Easy

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Chapter 19 – International Environmental Agreements

29. The Environmental Protection Agency (EPA) has estimated that for every 1 percent increase in UVB radiation, basal-cell and squamous-cell cancer cases increase by 1 and 2 percent respectively. This is called A. sensitivity analysis.

B. a dose-response relationship.

C. ecosystem response.

D. vigorous response.

Difficulty: Easy

30. Initially, in order to reduce the damages associated with CFCs, manufacturers began using A. hydrofluorocarbons, which do not cause environmental damage.

B. hydrofluorocarbons, which cause less environmental damage.

C. hydrofluorocarbons, which cause more environmental damage.

D. equipment that limited the environmental impacts of CFCs. Difficulty: Easy

31. The “Paris Agreement” refers to A. an agreement on carbon emissions goals for people living and visiting Paris B. an agreement of over 100 countries to subsidize electric vehicle use to reduce global warming C. an agreement for countries in Europe to set a goal to reduce global warming D. an agreement on reducing global warming that allows countries to join or leave the agreement.

32. A key feature of the Paris Agreement is that A. countries follow uniform goals B. countries set their own goals C. countries negotiate goals bilaterally D. countries follow a top-down rather than a bottom-up protocol

33. If a bi-lateral international agreement partially moves to a victim pays principled (VPP) for a given level of emissions, the marginal abatement costs for the victim A. increase B. decrease C. do not change D. cannot be determined

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Chapter 19 – International Environmental Agreements

34. In an international agreement, when one country sacrifices (A) to benefit another country (B), this usually is an indication that A. MACA > MDA B. MACB > MDB C. MACA = MACB D. MDA = MDB

35. Transactions costs associated with international agreements A. are negative with consensus decision rules B. are negative with majority decision rules C. are positive with majority and consensus decision rules D. do not apply to majority and consensus decision rules

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Chapter 20 – Globalization

Chapter 20 Globalization

Multiple Choice Questions 1. Which of the following is considered to be a direct characteristic of globalization?

A. Increasing trade among nations B. Interconnectedness of international financial markets C. Movements of people both within and between countries D. All of the above Difficulty: Easy

2. Which of the following is considered to be an indirect characteristic of globalization?

A. Significant realignments in political power B. Greater inequalities in income and wealth C. Cultural and economic homogenization D. All of the above Difficulty: Easy

3. Which of the following is a true statement?

A. Over the last 60 years, the annual growth rate of economic activity in the world has been about 3.5 percent.

B. Over the last 60 years, the annual growth rate in total global exports has been about 6.2 percent.

C. Over the last 60 years, international trade has grown about twice as fast as overall economic growth.

D. All of the above.

Difficulty: Easy.

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Chapter 20 – Globalization

4. The interconnectedness of financial markets and the rapid movement of money and other financial assets is thought to contribute to A. trade tariffs imposed by underdeveloped countries.

B. economic destabilization, especially in smaller countries.

C. inflation, especially in larger countries.

D. all of the above.

Difficulty: Easy

5. Globalization is often associated with a greater tendency for allocating economic activity toward A. multi-sector institutions.

B. big government and public institutions.

C. private sector and market oriented institutions.

D. non-manufacturing and service institutions.

Difficulty: Easy

6. Globalization is thought to shift power away from _________ to _____________.

A. national governments; regional authorities B. regional authorities; national governments C. international bodies; national governments D. national governments; international bodies Difficulty: Moderate

7. In terms of world population, there are _________ today for every one person 50 years ago. A. 10 people B. 5 people C. 2.1 people D. 0.5 people Difficulty: Easy.

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Chapter 20 – Globalization

8. While it is important not to draw conclusions about the effects of globalization from _________, it is equally important not to draw conclusions from _________________.

A. theory, empirical data B. thorough statistical analysis of data, qualitative data sets C. anecdotal evidence; subgroups of populations in aggregate data D. anecdotal evidence; averages drawn from aggregate data Difficulty: Moderate

9. Data have suggested that in both macro and micro examples, increased exports have lead to increased environmental damage. This may be the result of __________________.

A. effective pollution control technology B. effective pollution control institutions C. neither A nor B. D. both A and B. Difficulty: Moderate

10. The example of the island of Nauru, where a valuable deposit of phosphate was discovered in the early 1900s, offers the lesson that A. globalization and increased exports lead to higher incomes for local residents.

B. natural resources lead to expanded, sustainable income for local residents.

C. an open economy and world trade do not always lead to sustainable economic growth.

D. globalization and open economies lead to poorer local economies.

Difficulty: Moderate

11. The main institution governing world trade is the A. World Trade Organization (WTO).

B. General Agreement on Tariffs and Trade (GATT).

C. Free Trade Organization (FTO).

D. there is no organization that governs world trade.

Difficulty: Easy

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Chapter 20 – Globalization

Effects of Environmental Regulations on Domestic Production and Imports

12. Refer to the figure above. The graph represents consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. The import supply curve is horizontal because A. the world produces a relatively small amount of this good.

B. no matter how much this country buys, their demand does not impact world price.

C. this is a renewable good, for which there is no shortage.

D. all of the above.

Difficulty: Moderate

13. Refer to the figure above. The graph represents consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. If the country restricts imports to zero, domestic supply is ____.

A. q1 B. q2 C. q0 D. none of the above Difficulty: Easy

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Chapter 20 – Globalization

14. Refer to the figure above. The graph represents consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. If the country allows imports, domestic supply is ____.

A. q1 B. q2 C. q0 D. none of the above Difficulty: Easy

15. Refer to the figure above. The graph represents consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. If the country allows imports, domestic demand is ____ A. q1 B. q2 C. q0 D. none of the above Difficulty: Easy

16. Refer to the figure above. The graph represents consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. If the country allows imports, the amount of imports demanded from world producers is ________.

A. (q0 – 0) B. (q2 – q1) C. (q0 - q2) D. (q0 – q1) Difficulty: Easy

17. Refer to the figure above. The graph represents automobile consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. Assume that this country imposes emissions restrictions on automobiles that changes domestic supply to S’ and import supply to I’. The result of this emission policy is A. an increase of imports from q1 to q2.

B. a decrease of domestic supply from q0 to q2.

C. a decrease of domestic demand from q0 to q2.

D. all of the above.

Difficulty: Easy

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Chapter 20 – Globalization

18. Refer to the figure above. The graph represents automobile consumers and suppliers in a country that relies on imports. Curve D is domestic demand, Curve S is domestic supply and Curve I is the import supply curve. Assume that this country imposes emissions restrictions on automobiles that changes domestic supply to S’ and import supply to I’. The result of this emission policy is A. increase imports from (q1 - q2) to (q0 - q2).

B. decrease imports from (q1 - q2) to (q0 - q2).

C. increase imports from (q0 – q1) to (q2 – q1).

D. decrease imports from (q0 – q1) to (q2 – q1).

Difficulty: Easy

19. The World Trade Organization (WTO) has clear rules and guidelines that allow governments to place restrictions on imports A. that are produced in a way that damages the environment.

B. of products that domestic producers cannot produce competitively.

C. of products that interfere with domestic environmental aesthetics.

D. of products that have direct health implications, as long as it is done in a nondiscriminatory way.

Difficulty: Easy

20. The phrase “Race to the Bottom” describes A. the weakening of environmental standards brought about by competitive pressures in the global economy.

B. the incentive for high emission companies to locate within countries with lax environmental policies.

C. the dumping of industrial waste in oceans.

D. the continual decline of wages due to global competitive pressures.

Difficulty: Easy

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Chapter 20 – Globalization

21. In direct contrast to the ‘Race to the Bottom’ speculation, data reveals that A. correlations across countries between income and the stringency of environmental protections regulations are positive.

B. higher incomes are associated with weaker environmental standards.

C. there is no correlation between income level and the stringency of environmental protections within a country.

D. both A and B. Difficulty: Moderate

22. The Pollution Haven issue can be described as A. political pressure to weaken environmental standards in countries with low GDPs. B. the incentive for high emission companies to locate within countries with lax environmental policies.

C. developing countries that become dependent on accepting trash for disposal.

D. unoccupied and undeveloped land where illegal dumping takes place.

Difficulty: Easy

23. One of the difficulties in trying to determine the validity of the pollution haven hypothesis is that A. weaker environmental regulation and enforcement is not the only criteria for deciding where to locate a firm.

B. globalization has made it difficult for firms to relocate from one country to another.

C. countries may have strict environmental laws but enforcement may be lacking.

D. companies may locate in a country with strict environmental policy but break the law.

Difficulty: Easy

24. One of the environmental considerations that should be understood regarding increased international trade from globalization and the transport of goods is A. the potential for an increase in the carbon footprint of global output.

B. the technology and carbon intensity differential between trading countries.

C. restrictive tariffs between two trading countries.

D. both A and B. Difficulty: Easy

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Chapter 20 – Globalization

25. An example of a regional trade agreement among groups of countries and trading partners is ________________.

A. the African Continental Free Trade Agreement B. the Asia-Pacific Trade Agreement C. the North American Free Trade Agreement or United States-Mexico-Canada Agreement D. all of the above Difficulty: Easy

26. The North American Free Trade Agreement (NAFTA) has been accused of encouraging US and Canadian firms to relocate to Mexico in search of A. a pollution haven.

B. a race to the bottom.

C. reduced barriers to trade.

D. all of the above.

Difficulty: Easy

27. Many international environmental agreements include restrictions on trade. For example, the Montreal Protocol A. prohibits export of controlled substances from signatory nations to nonsignatory nations.

B. prohibits import of controlled substances from nonsignatory nations to signatory nations.

C. prohibits trade of controlled substances between nonsignatory nations.

D. both A and B. Difficulty: Easy

28. The purpose of environmental trade regulations is to A. increase ozone-depleting chemicals.

B. ensure that production of CFCs does not simply migrate to nonsigning countries.

C. encourage technology transfer.

D. both B and C. Difficulty: Easy

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Chapter 20 – Globalization

29. The 1975 Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) act regulates trading in species by A. banning trade on those that are threatened with extinction.

B. allowing trade, with conditions, for those species that may become threatened if trade is not restricted.

C. requires trade permits for those species that are protected within at least one country.

D. all of the above.

Difficulty: Easy

30. Trade restrictions for endangered species can be implemented through restrictions on imports or exports. Each will reduce the quantity traded, but restrictions on ______ reduce supply and ________ price, while restrictions on ____________ reduce demand and ________ price.

A. imports, increase; exports, decrease B. exports, increase; imports, decrease C. imports, decrease; exports increase D. exports, decrease; imports, increase Difficulty: Moderate

31. Globalization means A. lower environmental impacts by the typical country B. an increase in tariffs to regulate trade C. more economic interconnections among countries D. a greater influence of the United Nations on international relations 32. A good example of international trade destroying an environment is A. coastal pollution in Myanmar B. the wildfires in Australia C. air pollution in India D. the Pacific island of Nauru 33. An international pollution haven is a country that A. is insulated from trade B. has signed the Paris Agreement C. attracts new pollution-control technology from abroad D. attracts dirty industries from other countries 34. A good example of environmental trade restrictions is A. the U.S. Clean Air Act B. the European Trading Scheme C. the Basel Convention on Transboundary movements of hazardous waste D. the International Convention on Recycled Materials 20-9 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 20 – Globalization

35. An environmental race to the bottom involves A. countries adjusting their environmental laws to attract foreign investment B. countries tightening environmental regulations to out compete other countries C. The U.N. Environment Program penalizing certain dirty countries D. the race to develop new pollution-control technology 36. By carbon intensity we mean A. greenhouse gases emissions from a typical car B. greenhouse gases emissions from over a one-year period C. greenhouse gases emissions under the Paris Agreement D. greenhouse gases emissions per dollar of output 37. If exporting countries have higher average carbon intensity than importing countries, A. trade will increase the world’s carbon footprint B. trade will decrease the world carbon footprint C. trade will have no effect on the world’s carbon footprint D. trade will have an impact on the world’s carbon footprint, but it could go either way

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Chapter 21 – Economic Development and the Environment

Chapter 21 Economic Development and the Environment

Multiple Choice Questions 1. Economic growth is measured by A. an increase in the aggregate level of output.

B. an increase in per capita output.

C. a set of technological, institutional and social transformations.

D. All of the above.

Difficulty: Moderate

2. Economic development is measured by A. an increase in the aggregate level of output.

B. an increase in per capita output.

C. an increase in economic activity without any underlying change in the fundamental structure and institutions of a country.

D. All of the above.

Difficulty: Easy

3. Developing countries are mainly concerned with water and air pollution in their own countries. Pressing concernsinclude A. water supplies that are responsible for death and disease.

B. river waters that have become contaminated with heavy metals and toxic chemicals.

C. seepages from industrial sites and waste dumps that threaten ground water.

D. All of the above.

Difficulty: Easy.

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Chapter 21 – Economic Development and the Environment

4. Refer to the figure above. Curve A represents the trade-off between market goods and environmental quality in a developed country. Curve B represents the same in a lessdeveloped country. In order for both firms to achieve the same level of marketed output (c1), Country can attain ________ levels of environmental quality.

A. higher B. lower C. equivalent D. indeterminate Difficulty: Easy

5. Refer to the figure above. When emphasizing the trade-off depicted in the PPC graph above, the fact that the environmental goods and GDP can be _______ goods is ignored.

A. normal B. substitute C. complimentary D. luxury Difficulty: Easy

6. Community resilience is defined as the ability A. of a community to re-build after a disaster.

B. to absorb financially displaced members of society.

C. to embrace an increased refugee population.

D. All of the above.

Difficulty: Easy

21-2 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 21 – Economic Development and the Environment

7. Sustainability is defined as a practice that A. shifts the PPC to the left.

B. relies on nonrenewable resources.

C. does not reduce the long-run productivity of a country’s natural resource assets on which income and development depend.

D. All of the above.

Difficulty: Easy.

8. As peoples’ incomes ________, they are more likely to sacrifice for a/an ________ environmental quality.

A. increase; improvement in B. decrease; improvement in C. increase; deterioration in D. None of the above.

Difficulty: Moderate

9. Though relationships between income and environmental quality are not inevitable, there are some general trends that have been revealed. Studies show that as a country’s per capita income rises A. exposure to CO2 emissions decrease.

B. exposure to particulate solids wastes decrease.

C. exposure to particulates and sulfur dioxide (SO2) first decrease and then increase.

D. access to safe water and adequate sanitation rise.

Difficulty: Moderate

10. Though relationships between income and environmental quality are not inevitable, there are some general trends that have been revealed. Studies show that as a country’s per capita income rises A. exposure to CO2 emissions increase.

B. exposure to municipal solid wastes increase.

C. exposure to particulates and sulfur dioxide (SO2) first increase and then decrease.

D. All of the above.

Difficulty: Moderate

21-3 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 21 – Economic Development and the Environment

11. For many environmental problems, population exposure is likely A. dependent upon technology choices that are adopted within a country.

B. dependent upon the preferences of the citizens residing in the country.

C. to decrease with economic development.

D. All of the above.

Difficulty: Easy

12. When developing environmental policy for developing economies, there is a critical need to A. restrict energy use to renewable sources.

B. understand the benefits and costs of alternative policies.

C. consult the World Health Organization about the health effects of pollution.

D. maximize development initially because citizens will value environmental assets more once their income has increased.

Difficulty: Easy

13. One of the issues of measuring benefits in developing countries is that the willingness to pay requires A. the use of an estimated discount rate.

B. ability to pay.

C. understanding peoples’ tastes and preferences.

D. None of the above.

Difficulty: Easy

14. In the face of extensive poverty, willingness to pay measures may be _______.

A. small B. large C. immeasurable D. impractical Difficulty: Easy

15. People in developing countries, especially those with very low incomes, discount the future _________.

A. at an arbitrary rate B. at a low rate C. at a high rate D. None of the above.

Difficulty: Easy

21-4 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 21 – Economic Development and the Environment

16. When a positive discount factor is used, the discounted value of long-run environmental damage contributes to _______.

A. inaccurate valuation of the future B. lost productivity C. maintaining intergenerational equity D. differences in intergenerational equity Difficulty: Easy

17. An example of a type of policy that creates distortions in local economies is government subsidies for pesticide use by farmers. The distortion effects include A. heavy pesticide exposure for farm workers.

B. overuse of agricultural chemicals by farmers.

C. rapid development of immunity by targeted pests.

D. All of the above.

Difficulty: Easy

18. Open access resources promote a __________ situation.

A. pay as you use B. pay when you can C. use-it-or-lose-it D. tax and trade Difficulty: Easy

19. The lack of management of common-property externalities is often a property rights problem caused by the lack of __________ that assigns individual or small-group property rights.

A. an institution B. tax law C. a market D. political pressure Difficulty: Easy

21-5 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 21 – Economic Development and the Environment

20. In the simplest terms possible, the total impact of people on environmental resources can be expressed as A. Total environmental impact= Environmental impact per person X Number of people.

B. Total Resource Base Reductions = Total Resource Base / Number of people.

C. Total environmental impact = Impact per person / Number of people.

D. Total Resource Base Reductions = Resources used per person X people per captia.

Difficulty: Easy

21. In order to achieve a decrease in environmental impact can be achieved, one must A. reduce the size of the population.

B. reduce the environmental impact per person.

C. either A or B. D. both A and B. Difficulty: Moderate

22. Increasing incomes are almost always associated with A. lower municipal waste.

B. lowered fertility rates.

C. lower carbon dioxide (CO2) per capita.

D. decreased access to safe water.

Difficulty: Easy

23. In developing countries, ________ is/are the dominant trend in environmental policy.

A. command and control B. incentives C. cap and trade D. emissions taxes Difficulty: Easy

21-6 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

Chapter 21 – Economic Development and the Environment

24. In environmental policy, the term technology transfer refers to A. the marketing of environmental technology from private companies to public entities.

B. the technology and carbon intensity differential between trading countries.

C. the transfer of revenue gained from technology transfers from private to public entities.

D. the transfer of skills and technology from developed to developing countries that allows for economic development with lower environmental impacts.

Difficulty: Easy

25. Some of the most egregious cases of environmental damage in developing countries are projects that had direct involvement from A. the United States.

B. the World Health Organization.

C. the North American Free Trade Agreement.

D. international aid organizations.

Difficulty: Easy

26. Payment for Environmental Services (PES) programs are A. incentive programs that offer monetary payments to people who engage in environmental conservation activities.

B. command and control policies that pay participants for participation in reduction programs.

C. emissions tax programs that charge people for specific types of emissions.

D. technology standards programs that offer subsidies to people who buy specific technology that reduces their emissions.

Difficulty: Easy

27. Conditional Cash Transfers (CCTs) are A. incentive programs that offer cash payments conditional on recipients engaging in socially productive activities.

B. command and control policies that pay participants for participation in emission reduction programs.

C. emissions tax programs that charge people for specific types of emissions.

D. technology standards programs that offer subsidies to people who buy specific technology that reduces their emissions.

Difficulty: Easy

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Chapter 21 – Economic Development and the Environment

28. Because developing countries typically have lower GDPs per capita than developed countries, it becomes especially important for their environmental policies to be costeffective. This statement would support A. emissions standards.

B. technology based emission standards.

C. command and control policies.

D. incentive based policies.

Difficulty: Easy

29. Sustainable practices focus on keeping ___________ capital productive.

A. human B. physical C. institutional D. all of the above Difficulty: Easy

30. Developed countries should focus on _________ in supporting developing countries environmental initiatives.

A. population control B. technology transfer C. international mandates D. trade restrictions Difficulty: Easy

31. Climate change impacts on low-lying, coastal areas include A. population displacement B. people moving inland C. decrease in fisheries D. all of above

32. National Adaption Plans (NAPs) set by the Paris Agreement identify A. steps to reduce carbon emissions in developing countries B. steps to reduce impact of climate change in developing countries C. identifies funding goals for developing countries to attain D. provides funding for developing countries to develop their own technology

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Chapter 21 – Economic Development and the Environment

33. For developing countries, the Paris Agreement promotes A. green technology transfers B. building country resiliency C. sharing solutions for global warming D. all of above

34. Improving environmental quality will cause the production possibilities curve for lessdeveloped countries to A. shift upward B. shift downward C. not change market output D. become convex to the origin

35. A practice is sustainable if A. only renewable resources are used B. irreversible reductions in resources are replenished C. all resources are used slowly D. the long-run productivity of resources is not reduced 36. The total environmental impact of a country is equal to the size of the population times A. the amount of CO2 emitted per person B. the environmental impact per person C. the level of income per person in that country D. the number of environmental treaties entered into by that country

21-9 © 2021 by McGraw Hill. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.