FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 4: Pollution Problems: Must We Foul Our Own Nests

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

True/False

Review LaterAdd Note

Review Later

Polluting firms charge prices below what would exist without pollution.

Correct Answer

verified

Show Answer

Question 62

True/False

Review LaterAdd Note

Review Later

When a firm has to clean environmental resources prior to using them,the consumers of that firm's products are charged higher prices than would exist in the absence of pollution.

Correct Answer

verified

Show Answer

Question 63

True/False

Review LaterAdd Note

The optimum level of pollution is zero.

If the MPC of production is less than the MSC,the market will produce too much of the product.

A pollution rights market can be an efficient method of pollution control.

People have an incentive to pollute when

When a firm pollutes,its product will be under-priced and over-produceD.

The "marginal social benefit" of an economic activity is the benefit that is just above the margin of being zero.

A major advantage of using taxes to control pollution is that they provide an incentive to the polluter to seek improved ways to clean up dischargE.

The Following Questions Refer to the graph below. -A tax of more than T₁ per unit on polluted discharge will induce the firm to clean up

If your snoring keeps your roommate from sleeping,you roommate is experiencing a negative externality.

Implicit costs are also known as accounting costs.

Enjoying the smell of bread baking from your neighbor's house is an example of a negative externality.

It is efficient for regulatory bodies to induce reduction in pollution when the marginal social cost is lowest,regardless of which firms are the worst polluters.

Following Questions are based on the following information. In a small city located on a lake,the raw sewage of the city is dumped directly into the lakE.This has been a source of distress for citizens who like to swim,fish,and water ski.A study has been instituted to determine what value the citizens place on pollution control,and the results are listed in the following tablE.Costs of pollution control are also listed. -The marginal social benefit of the sixth unit of pollution control is

The socially optimal level of production for any good or service is found where MPB=MPC.

The Following Questions Refer to the graph below. -Assume that the current market demand and supply curves for Z are D₁ and S₁ and there are positive social spillovers associated with the production of Z.Which curve could represent the MSC curve for Z?

When firms make decisions about output and about the amount of pollution that they produce,without government regulation

To date,there has been no formal use of pollution rights markets.

The optimum level of pollution control is where marginal social benefit equals marginal social cost.