Environmental Econ (ECON 3190) RAT1

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

d. all of the choices are correct

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 are referred to as:

a. disruption

b. damages

c. effluent

d. emissions

b. damages

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 the source of pollution

c. have a well-defined point of discharge

The policy challenge for episodic emissions is to manage

a. the probability of accidental discharges

b. the likelihood that continuous discharges are damaging

c. the people who frequently cause accidents

d. air pollution in developing nations

a. the probability of accidental discharges

Pollutants for which ambient concentrations in the environment are a function of current and past emissions are

a. point source pollutants

b. nonpoint source pollutants

c. cumulative pollutants

d. noncumulative pollutants

c. cumulative pollutants

The equimarginal principle addresses

a. equality

b. efficiency

c. willingness to pay

d. aggregate benefits

b. efficiency

The opportunity cost of using a resource is:

a. the money cost of the resource

b. the value of the next best use of the resource

c. the environmental cost of production from the resource

d. applicable only to choices involving material goods

b. the value of the next best use of the resource

marginal willingness to pay _________

a. the consumer's additional willingness to pay for one more unit of the good

b. the consumer's additional ability to pay for one more unit of the good

c. the consumer's ability to pay for consumption of all units of the good

d. the consumer's willingness to pay for consumption of all units of the good

a. the consumer's additional willingness to pay for one more unit of the good

Markets typically produce efficient outcomes

a. unless market quantity supplied equals quantity demanded

b. but not when there are external costs

c. in the production of public goods

d. even when there are external benefits

b. but not when there are external costs

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

b. a positive externality

External costs are

a. costs falling on someone other than the decision maker incurring the cost

b. the same as social costs

c. are the sum of private costs

d. both a and b

a. costs falling on someone other than the decision maker incurring the cost

When the rate of output is at the socially efficient level ___________.

a. the total willingness to pay is as large as possible.

b. profit is as large as possible

c. the difference between marginal WTP and marginal cost is as large as possible

d. net social value is equal to total WTP minus total costs is as large as possible

d. net social value is equal to total WTP minus total costs is as large as possible

Economic efficiency is achieved when

a. total benefits equal total costs

b. marginal willingness to pay equals the marginal cost of production

c. the difference between marginal cost and marginal willingness to pay is as large as possible

d. the net market exchange is maximized

b. marginal willingness to pay equals the marginal cost of production

use of an open access resource:

a. tends to be greater than the socially optimal level

b. is hard to exclude free riders from but generally results in efficient use

c. typically produces positive externalities for others use

d. is usually restricted only to those who pay for use.

a. tends to be greater than the socially optimal level

Due to free riding, public goods are typically

a. over-supplied

b. supplied by private firms who can restrict access

c. taxed

d. under-supplied

d. under-supplied