EC238 PRACTICE FINAL EXAM MULTIPLE CHOICE QUESTIONS AND ANSWERS

EC238 PRACTICE FINAL EXAM
MULTIPLE CHOICE QUESTIONS AND
ANSWERS
Moral objections to the use of effluent subsidies to help firms reduce their emissions
arise
from the idea that ________.
A. subsidies are politically unpalatable
B. subsidies can never be cost-effective
C. effluent taxes work better than subsidies
D. the polluter should pay - Answer-D. the polluter should pay

3. A polluter with MAC = 1,200 ˗ 5E will emit ________ when faced with an
emissions tax of
$75 per unit of emissions.
A. 15 units
B. 225 units
C. 255 units
D. 825 units - Answer-B. 225 units

4. The socially efficient equilibrium emission standard sets the maximum rate of
emissions equal
to ________.
A. the level of emissions that equates MAC and MDC
B. zero
C. the level of abatement that equates MAC and MDC
D. the level of emissions that minimizes total abatement cost - Answer-A. the level of
emissions that equates MAC and MDC

5. When both the provinces and the federal government have laws over the same
area this is
known as ________ and the doctrine of ________ describes the situation where
federal law takes
precedence over provincial law when the laws are in conflict.
A. concurrency; legitimate expectations
B. concurrency; paramountcy
C. paramountcy; concurrency
D. double jeopardy; paramountcy - Answer-B. concurrency; paramountcy

6. Ontario's command-and-control program to deal with all types of water pollution is
known by
the acronym ________.
A. BATEA
B. MISA
C. CARP
D. BAT - Answer-B. MISA