EC238 Final Exam Assessment Questions And Answers Well Elaborated Rated A+.

Which of the following reasons contributes to making the achievement of the socially efficient level of emissions difficult in practice? There is political resistance to imposing regulations on industry It is difficult to measure the damages from pollution Polluters find ways to evade monitoring of their emissions All of the above - correct answer All of the above A citizen suit requires: That the burden of proof is on the defendant Proof that the defendant is violating environmental statute That the plaintiff prove they were personally harmed by the pollution emitted by the defendant That the public regulatory/authority brings a class action civil suit against polluting firm - correct answer Proof that the defendant is violating environmental statute In environmental economics, PPP stands for: Pollution Power Principle Prevent Pollution Principle Polluter Pays Principle Purchasing Power Parity - correct answer Polluter Pays Principle Which of the following is NOT one of the conditions that limits the ability of liability laws to lead to an efficient level of pollution? Transaction costs inhibit negotiation and legal action There is difficulty in obtaining standing Very few people are involved There are problems meeting the burden of proof - correct answer Very few people are involved The problem of firms who comply with a moral appeal to reduce emissions being penalized because they incur additional costs while firms who choose not to comply face no punishment can be viewed as: Adverse Selection A Free Rider Problem Moral Suasion The tragedy of commons - correct answer A Free Rider Problem The fact that a socially efficient equilibrium can be reached regardless of the assignment of property rights is known as the: Opportunity cost doctrine Coase theorem Burden of proof Pareto optimality condition - correct answer Coase theorem Standards that take the form of never-exceed levels for specific pollutants in an ambient environment are known as: Bubble standards Performance standards Emission standards Ambient standards - correct answer Ambient standards When a multi-plant firm is allowed to treat the emissions of all of their facilities together when considering how to achieve a total abatement target in a cost-effective manner, this is called an: Performance standard Bubble Standard Total Maximum daily load Emission Standard - correct answer Bubble Standard When CARP was introduced 80 percent of Ontario's emissions of the main acid precipitation causing substance were from: Ontario Hydro and Inco Ontario Hydro, Algoma Steel, Into and Falconbridge Metals Ontario Hydro Ontario Hydro, Algoma Steel, Into and Alcan - correct answer Ontario Hydro, Algoma Steel, Into and Falconbridge Metals The main type of standard associated with TMDL is: An ambient standard An emission standard A bubble standard A technology-based standard - correct answer An ambient standard An ______ performs better than an _____ at giving firms an incentive to find a lower cost way of achieving their abatement target since they could reduce their total compliance costs by doing so. Technology-based standard; technology-forcing standard Emission standard; bubble standard Performance standard; emission standard Emission standard; technology-based standard - correct answer Emission standard; technology-based standard Which of the following statements about incentive-based policies is NOT correct? Economists prefer incentive-based schemes over command-and-control schemes because they are cost-effective Incentive-based schemes are less centralized than standards since firms make their own decisions about how to allocate abatement based on market signals With incentive-based schemes a regulatory authority needs knowledge of the marginal abatement cost curve in order to design a cost-effective policy - correct answer With incentive-based schemes a regulatory authority needs knowledge of the marginal abatement cost curve in order to design a cost-effective policy The double dividend of emission taxes refers to: The tax revenue the government collects due to the emission tax plus the dividends they earn when they invest this tax revenue Reduced pollution plus lowered taxes on consumption, investment and income Reductions in public debt plus lowered taxes on consumption, investment and income Charging a tax on emissions plus using the tax revenue to fund government programs - correct answer Reduced pollution plus lowered taxes on consumption, investment and income An emission trading system where the amount of permits is set to match the desired level of emissions and permits equal to the desired level of emissions are created and allocated in some fashion to the participants in the trade area is known as: