EC 238 EXAM MC EXAM QUESTIONS
WITH CORRECT ANSWERS
With an emission tax firms set their level of emissions such that:
a.marginal damage cost equals the tax.
b.total abatement cost equals the tax.
c.marginal abatement cost equals the tax.
d.total abatement cost equals total taxes paid. - Answer-C
If the industry marginal abatement cost curve equals: MAC = 400 - 2E and the
marginal damage cost curve is MDC = 50 + 3E, what is the socially efficient emission
tax rate?
a.$60
b.$70
c.$90
d.$260 - Answer-D
The double dividend of emission taxes refers to:
a.-reduced pollution plus lowered taxes on consumption, investment and income.
b.-the tax revenue the government collects due to the emission tax plus the
dividends they earn when they invest this tax revenue.
c.-reductions in public debt plus lowered taxes on consumption, investment and
income.
d.-charging a tax on emissions plus using the tax revenue to fund government
programs. - Answer-a
In a socially efficient permit scheme, the number of permits would equal
a.the number of firms in the industry.
b.the level of abatement that equates marginal abatement cost with marginal
damage cost.
c.the socially efficient level of abatement.
d.the socially efficient level of emissions. - Answer-D
An emission permit/allowance scheme will:
a.result in a lower level of abatement than an emission tax scheme.
b.give firms a stronger incentive to abate than an emission tax scheme.
c.result in greater abatement than an emission tax scheme.
d.result in the same level of abatement as an emission tax scheme. - Answer-D
What is the main difference between Canada and the United States when it comes
to environmental regulation?
,-In Canada most of the regulatory power lies with the provinces/territories whereas in
the US, Congress writes environmental laws and the individual states must develop
regulations to comply with them.
-In Canada most of the regulatory power lies with the federal government and
provinces/territories must implement federal standards whereas in the US, most of
the regulatory power lies with the individual states.
-Canada and the United States share very similar environmental policy setting
situations.
-Canadian provinces and the federal government have a harmonious relationship
setting environmental regulations while in the US, Congress and the states
constantly bicker about who has the power to enact legislation. - Answer-A
Which of the following is NOT a valid reason for the federal government to request
an environmental assessment under the Canadian Environmental Assessment Act?
-The proposed project might affect fish and/or fish habitat, aquatic species or
migratory birds.
-The proposed project might affect provincial Crown lands.
-The proposed project might have an environmental impact affecting Aboriginal
peoples.
-The proposed project might affect federal lands, in a province other than the
province where the project is being carried out, or outside Canada. - Answer-B
An example of conflicting federal and provincial constitutional powers related to
transboundary pollution that established federal jurisdiction over ocean dumping
under the Peace, Order and Good Government clause of the Constitution is the case
of:
Regina versus Dolphin Delivery Ltd.
Regina versus Sundance Northwest Resorts.
Regina versus Crown Zellerbach Canada.
Regina versus Lac Minerals Ltd. - Answer-C
Which of the following comparisons between the environmental policy setting
situation in Canada and the United States is NOT true?
-In Canada, the government can limit public debate and scientific inquiry into
environmental issues because it controls the federal bureaucracy while in the US,
independent research is frequently done for Congress helping influence policy.
-There are many legal challenges to regulations in the US and very few in Canada.
-The Canadian process of setting environmental regulations is more cooperative
than in the US.
-In the US, the process for setting standards and designing regulations is far more
informal, discretionary and closed than in Canada. - Answer-D
Which of the following statements about Environment Canada is NOT true?
-Environment Canada was created in 1971 combining a number of federal agencies
that had environmental responsibilities.
-Environment Canada's biggest success story is the 1990 Green Plan.
, -Environment Canada rarely develops environmental policies that employ economic
incentives.
-Environment Canada is not favoured under the federal budgetary process. -
Answer-B
Which of the following are NOT members of the CCME?
-the federal minister of the environment
-provincial ministers of the environment
-major Canadian environmental NGOs
-territorial ministers of the environment - Answer-C
Which of the following statements about the NRTEE is NOT true?
-The NRTEE was highly regarded by many in industry and the government.
-The goal of the NRTEE was to integrate environmental and economic
considerations to ensure the lasting prosperity and well-being of Canada.
-The NRTEE consists of the provincial and territorial Ministers of the Environment
and the federal Minister of the Environment.
-The NRTEE was responsible for producing several interesting and helpful reports
on climate change. - Answer-C
Which of the following statements about the US Environmental Protection Agency is
NOT true?
-The EPA works in partnership with businesses, non-profit organizations, and state
and local governments.
-Nearly half of the EPA's budget goes into grants to state environmental programs,
non-profit organizations and educational institutions.
-The EPA sets national standards that states and tribes enforce through their own
regulations.
-The EPA manages the Endangered Species Act. - Answer-D
Which of the following statements about the 1990 Green Plan is NOT true?
-The Chretien government increased the budget of the Green Plan from $3 billion to
$6 billion.
-The Green Plan set out an agenda to achieve seven separate goals.
-The Green Plan did not include any incentive-based environmental policies.
-The Green Plan resulted in the publication of the National Pollutant Release
Inventory starting in 1994. - Answer-A
Which of the following statements about Canadian environmental policy is NOT true?
-Environmental legislation in Canada is quite combative between the government
regulator and polluters.
-Environmental legislation in Canada is primarily enabling rather than mandatory.
-Incentive-based policies are much less common than command-and-control
policies.
-Technology-based standards are widely used. - Answer-A
WITH CORRECT ANSWERS
With an emission tax firms set their level of emissions such that:
a.marginal damage cost equals the tax.
b.total abatement cost equals the tax.
c.marginal abatement cost equals the tax.
d.total abatement cost equals total taxes paid. - Answer-C
If the industry marginal abatement cost curve equals: MAC = 400 - 2E and the
marginal damage cost curve is MDC = 50 + 3E, what is the socially efficient emission
tax rate?
a.$60
b.$70
c.$90
d.$260 - Answer-D
The double dividend of emission taxes refers to:
a.-reduced pollution plus lowered taxes on consumption, investment and income.
b.-the tax revenue the government collects due to the emission tax plus the
dividends they earn when they invest this tax revenue.
c.-reductions in public debt plus lowered taxes on consumption, investment and
income.
d.-charging a tax on emissions plus using the tax revenue to fund government
programs. - Answer-a
In a socially efficient permit scheme, the number of permits would equal
a.the number of firms in the industry.
b.the level of abatement that equates marginal abatement cost with marginal
damage cost.
c.the socially efficient level of abatement.
d.the socially efficient level of emissions. - Answer-D
An emission permit/allowance scheme will:
a.result in a lower level of abatement than an emission tax scheme.
b.give firms a stronger incentive to abate than an emission tax scheme.
c.result in greater abatement than an emission tax scheme.
d.result in the same level of abatement as an emission tax scheme. - Answer-D
What is the main difference between Canada and the United States when it comes
to environmental regulation?
,-In Canada most of the regulatory power lies with the provinces/territories whereas in
the US, Congress writes environmental laws and the individual states must develop
regulations to comply with them.
-In Canada most of the regulatory power lies with the federal government and
provinces/territories must implement federal standards whereas in the US, most of
the regulatory power lies with the individual states.
-Canada and the United States share very similar environmental policy setting
situations.
-Canadian provinces and the federal government have a harmonious relationship
setting environmental regulations while in the US, Congress and the states
constantly bicker about who has the power to enact legislation. - Answer-A
Which of the following is NOT a valid reason for the federal government to request
an environmental assessment under the Canadian Environmental Assessment Act?
-The proposed project might affect fish and/or fish habitat, aquatic species or
migratory birds.
-The proposed project might affect provincial Crown lands.
-The proposed project might have an environmental impact affecting Aboriginal
peoples.
-The proposed project might affect federal lands, in a province other than the
province where the project is being carried out, or outside Canada. - Answer-B
An example of conflicting federal and provincial constitutional powers related to
transboundary pollution that established federal jurisdiction over ocean dumping
under the Peace, Order and Good Government clause of the Constitution is the case
of:
Regina versus Dolphin Delivery Ltd.
Regina versus Sundance Northwest Resorts.
Regina versus Crown Zellerbach Canada.
Regina versus Lac Minerals Ltd. - Answer-C
Which of the following comparisons between the environmental policy setting
situation in Canada and the United States is NOT true?
-In Canada, the government can limit public debate and scientific inquiry into
environmental issues because it controls the federal bureaucracy while in the US,
independent research is frequently done for Congress helping influence policy.
-There are many legal challenges to regulations in the US and very few in Canada.
-The Canadian process of setting environmental regulations is more cooperative
than in the US.
-In the US, the process for setting standards and designing regulations is far more
informal, discretionary and closed than in Canada. - Answer-D
Which of the following statements about Environment Canada is NOT true?
-Environment Canada was created in 1971 combining a number of federal agencies
that had environmental responsibilities.
-Environment Canada's biggest success story is the 1990 Green Plan.
, -Environment Canada rarely develops environmental policies that employ economic
incentives.
-Environment Canada is not favoured under the federal budgetary process. -
Answer-B
Which of the following are NOT members of the CCME?
-the federal minister of the environment
-provincial ministers of the environment
-major Canadian environmental NGOs
-territorial ministers of the environment - Answer-C
Which of the following statements about the NRTEE is NOT true?
-The NRTEE was highly regarded by many in industry and the government.
-The goal of the NRTEE was to integrate environmental and economic
considerations to ensure the lasting prosperity and well-being of Canada.
-The NRTEE consists of the provincial and territorial Ministers of the Environment
and the federal Minister of the Environment.
-The NRTEE was responsible for producing several interesting and helpful reports
on climate change. - Answer-C
Which of the following statements about the US Environmental Protection Agency is
NOT true?
-The EPA works in partnership with businesses, non-profit organizations, and state
and local governments.
-Nearly half of the EPA's budget goes into grants to state environmental programs,
non-profit organizations and educational institutions.
-The EPA sets national standards that states and tribes enforce through their own
regulations.
-The EPA manages the Endangered Species Act. - Answer-D
Which of the following statements about the 1990 Green Plan is NOT true?
-The Chretien government increased the budget of the Green Plan from $3 billion to
$6 billion.
-The Green Plan set out an agenda to achieve seven separate goals.
-The Green Plan did not include any incentive-based environmental policies.
-The Green Plan resulted in the publication of the National Pollutant Release
Inventory starting in 1994. - Answer-A
Which of the following statements about Canadian environmental policy is NOT true?
-Environmental legislation in Canada is quite combative between the government
regulator and polluters.
-Environmental legislation in Canada is primarily enabling rather than mandatory.
-Incentive-based policies are much less common than command-and-control
policies.
-Technology-based standards are widely used. - Answer-A
