ECON 2J03 Quiz 2 Questions and Answers_ 2025.

ECON 2J03 Quiz 2 Questions and Answers_ 2025. set to the left of the socially efficient point of emissions, the result will be a socially ineffiNet social gains are independent of who has the property rights to environmental resources. Question 1 options: True Refer to the Figure Below. The firm is facing an emissions charge of t and an abatement cost curve of MAC1. If the firm is able to lower its abatement cost curve to MAC2, it will C. emit at level e2 and save (c+d). Enforcement costs are critical to the success of environmental programs and should be included in the overall social costs of the program when evaluating different policy options. Question 2 options: Refer to the Figure below. The firm is facing an emissions charge of t and an abatement cost curve of MAC1. If the firm is able to lower its abatement cost curve to MAC2,and it now faces an emissions standard of e1, the firm will Emission standards specify the technologies, techniques, or practices that potential polluters must adopt. C. emit at level e1 and save (d). False TrueQuestion 4 options: True Production and consumption of green goods shifts the marginal abatement cost curve downward. Question 5 options: In order for a property rights approach to produce an efficient level of environmental pollution the following conditions must be met: Question 6 options: A. property rights must be well defined, enforceable and transferable. B. there must be a system for efficient negotiation about property rights to be negotiated. C. there must be a set of markets for environmental assets. suggest(s) that in the presence of an externality bargaining can achieve the socially efficient equilibrium regardless of the initial allocation of property rights. Question 7 options: A. Liability laws Moral considerations are often a part of the criteria for evaluating public policy. Which of the following is not a moral consideration regarding environmental policy? Question 8 options: A. Polluters should not be rewarded for terminating environmentally damaging behavior. False True D. all of the above. B. The Coase theoremB. Those who cause the problem should bear the burden of alleviating it. C. Polluting is an immoral behavior. If the damaging firm is emitting at the uncontrolled emissions level and is required to compensate damaged firms and individuals, the damaging firm has an incentive to Question 9 options: A. stop emissions entirely. B. reduce emissions until total abatement costs are equal to total damages. D. stay at the current level of emissions (e1) and pay the damages. If the marginal abatement cost of a policy is represented by: MAC = 1,400 - 5E, the total abatement cost when the target level of emissions is 200 units equals . Question 10 options: A. $400 B. $80,000 C. $32,000 D. All of the above are moral argument used to evaluate environmental policy. C. reduce emission to e*, where marginal damages are equal to marginal abatement costs.If an emission standard is set to the left of the socially efficient point of emissions, the result will be a socially inefficient level of pollution and will be greater than . Question 11 options: A. total damages; total abatement costs B. total abatement costs; total damages C. marginal damages; marginal abatement costs When marginal damages for a pollutant vary by region, time of day, or season, a(n) will not be socially efficient but that set the MAC curve equal to each MDC curve are socially efficient. Question 12 options: B. ambient standard; uniform standards C. individual standard; uniform standards D. technology-based standard; uniform standards Refer to the Figure Below. If the damaging firm is emitting at the uncontrolled emissions level and is required to compensate damaged firms and individuals, the damaging firm has an incentive to---------- Question 11 options: A. stop emissions entirely. D. $16,000 D. marginal abatement costs; marginal damages A. uniform standard; individual standards C. reduce emission to e*, where marginal damages are equal to marginal abatement costs. B. reduce emissions until total abatement costs are equal to total damages.When marginal damages for a pollutant vary by region, time of day, or season, a uniform standard will not be socially efficient but individual standards that equate the MAC to each MDC are socially efficient. Question 13 options: The equimarginal principle states that in order to get the greatest reductions in emissions for a given abatement cost, all firms should emit at a point that offers the same marginal abatement cost for each firm. Question 14 options: The ambient quality of the water at various points downstream of a source of pollution depends on the quantity of emissions only. Question 15 options: True Under the burden is on the to make the right decision about what technology to use. Question 16 options: A. technology-forcing standards; pollution control industry B. technology-based standards; polluting firms True A. total; total False C. technology-based standards; public regulatory authorityefer to the Figure Below. The firm is facing an emissions charge of t and an abatement cost curve of MAC1. If the firm is able to lower its abatement cost curve to MAC2, it will Question 17 options: A. emit at level e1 and save (d+e). B. emit at level e1 and save (d). The more public an environmental good is, the more likely private property rights can be used to achieve the socially optimal level of emissions. Question 18 options: True A command and control approach to public policy uses in order to bring about socially desirable behavior. Question 19 options: A. incentives C. emit at level e2 and save (c+d). False B. mandatesA centralized policy requires that ----------------- Question 20 options: The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the . Question 21 options: A. the level of abatement that equates MAC and MDC B. level of emissions that maximizes total abatement cost C. the level of emissions that minimizes total abatement cost Previous PageNext Page Goods that give the same level of pleasure as ordinary goods but that involve less environmental damage in either their production, use or disposal are known as . Question 22 options: A. a controlling administrative agency be responsible for determining what is to be done. D. the level of emissions that equates MAC and MDC A. generic goods C. green goods B. luxury goods