Question 1

Refer to Figure 5.1. Total damages associated with damage curve MD₁ at an emissions level of e₁ is _________.

Accepted Answer

D

Question 2

Refer to Figure 5.1. The change in damages associated with a shift from MD₁ to MD₂ at an emissions level of e₁is _________.

Accepted Answer

B

Question 3

The height of the marginal damage curve at a particular level of emissions shows

Accepted Answer

The height of the marginal damage curve shows how much total damages would change if there is a small change in the quantity of emissions. This is because the marginal damage curve represents the additional damage caused by each additional unit of emissions, and the height represents the magnitude of that additional damage.

Question 4

Which Figure above represents a social optimum at e*?

Accepted Answer

A social optimum occurs when the marginal social benefit equals the marginal social cost, which is represented in all figures (a), (b), and (c) at point e*. Each figure shows this equilibrium point, albeit in different contexts or with different curves, indicating that all scenarios can represent a social optimum.

Question 5

Under what circumstances would a firm with more than one source of production minimize its total costs of production by setting production levels equal at each source?

Accepted Answer

If each source has identical marginal cost of production structures, setting production levels equal at each source would result in minimizing total costs of production for the firm. This is because the firm can produce the same output with the same cost at each source, resulting in a more efficient allocation of resources.

Question 6

Describing and explaining economic events that have taken place in the real world is known as ___________.

Accepted Answer

Describing and explaining economic events that have taken place in the real world is the definition of positive economics. Normative economics involves making value judgments about what the economy should be like rather than describing how it actually is. The equimarginal principle is a concept used in economics to explain how rational consumers allocate their money to maximize utility. The Coase theorem is an economic theory that states that if property rights exist and transaction costs are low, private parties can efficiently bargain and reach a mutually beneficial agreement about the use of resources.

Question 7

For a firm with more than one source of emissions, the ________ states that the total costs of meeting a given abatement target will be minimized when the marginal costs of abatement are ________ across sources.

Accepted Answer

The equimarginal principle states that for a firm with multiple sources of emissions, the most cost-effective way to achieve a specific level of total emission reduction is to allocate abatement efforts in such a way that the marginal costs of abatement are the same across all sources.

Question 8

For certain pollutants with a (n) _______, emissions or ambient quality up to a certain level cause _________ damages.

Accepted Answer

The term "threshold" specifically refers to a level above which damage or harm occurs. Therefore, emissions or ambient quality below the threshold would not cause any damage. The word "severe" in option C and D is too extreme and not necessarily implied by the concept of a threshold. Option B refers to ambient concentration as the determining factor, which is not necessarily true for all pollutants that have a threshold.

Question 9

A(n) ________ shows how damages are related to the concentration of a waste product contained in the ambient environment.

Accepted Answer

An ambient damage function shows the relationship between the concentration of a waste product in the environment and the resulting damages, indicating how environmental quality or human health deteriorates as pollutant concentrations increase.

Question 10

Which Figure above represents a greater total abatement cost than total damage cost at the socially optimal point of emissions?

Accepted Answer

In figure (b), the intersection of the marginal abatement cost (MAC) and marginal damage cost (MDC) curves occurs at a level of emissions where the MAC curve is above the MDC curve, indicating that the total abatement cost is greater than the total damage cost at the socially optimal point of emissions.

Question 11

Which Figure above represents a marginal damages curve with a threshold?

Accepted Answer

Figure (b) represents a marginal damages curve with a threshold, as it shows no damages until a certain point, after which damages begin to increase.

Question 12

Which of the above Figures reveals a marginal damage curve that displays a threshold?

Accepted Answer

The answer of Which of the above Figures reveals a...

Question 13

Determining a target level of environmental quality is an example of _______.

Accepted Answer

Determining a target level of environmental quality involves value judgments about what is desirable or acceptable, making it an example of normative policy analysis. Positive policy analysis would involve analyzing the potential outcomes of a given policy without making value judgments. Positive economics would involve analyzing the economic impacts of a policy without making value judgments. Benefit-cost analysis involves comparing the benefits and costs of a policy or project to determine its overall desirability.

Question 14

For a firm with more than one source of output with differing cost structures, its ________ will be minimized when its ________ are equalized across sources.

Accepted Answer

C) Total production costs will be minimized when marginal production costs are equalized across sources. This is based on the principle of equi-marginal utility in economics, which states that to minimize costs or maximize utility, a firm should allocate resources in such a way that the marginal cost of production is the same for all sources of output.

Question 15

Refer to Figure 5.1. Total damages associated with damage curve MD₂at an emissions level of e₁ is _________.

Accepted Answer

The total damages associated with damage curve MD₂ at an emissions level of e₁ is equal to the sum of areas a and b, as shown in Figure 5.1. Therefore, the correct answer is D, area a+ b.

Question 16

For a single, non-accumulative pollutant, when no threshold exists

Accepted Answer

When no threshold exists for a pollutant, the very first unit of emissions has an impact on the environment. This means that the marginal damage function begins at zero and increases with each additional unit of emissions. As a result, even low levels of emissions can have a measurable impact on the environment.

Question 17

The study of what ought to be such as determining the socially efficient level of emissions is known as _____________.

Accepted Answer

Normative economics is concerned with determining what ought to be, in contrast to positive economics, which is concerned with describing the world as it is. The question of determining the socially efficient level of emissions is a normative question, as it involves making a judgment about what level of emissions is desirable. The equimarginal principle and the Coase theorem are both concepts from economics, but they are not directly relevant to the question of determining the socially efficient level of emissions.

Question 18

The least costly way of reducing emissions for a group of polluting sources is depicted by

Accepted Answer

The least costly way of reducing emissions for a group of polluting sources involves considering the aggregate marginal abatement costs, which can be represented by adding individual marginal abatement cost curves together to form a single curve that reflects the total costs of abatement for the group. This approach ensures that the most cost-effective measures are taken first, minimizing the overall cost of reducing emissions.

Question 19

A marginal damage function that becomes vertical at high levels of emissions represents _______.

Accepted Answer

The answer of A marginal damage function that becomes vertical...

Question 20

Under what circumstances would a firm with more than one source of emissions minimize its total costs of abatement by setting abatement levels equal at each source?

Accepted Answer

If each source has identical marginal abatement cost structures, it will be most cost-effective to set abatement levels equal at each source. This is because abating the same amount at each source will result in the same amount of total abatement, but because the marginal abatement costs are the same, the total cost of abatement will be minimized. In other words, the firm can achieve the same amount of abatement with the same cost per unit of abatement by setting equal abatement levels at each source. Option A is incorrect because this method may not always result in minimizing total abatement costs if the sources have different marginal cost or damage cost structures. Option B and D are also incorrect because having identical marginal cost or damage cost structures does not necessarily lead to the same marginal abatement costs.

Quiz 5: The Economics of Environmental Quality

Refer to Figure 5.1. Total damages associated with damage curve MD₁ at an emissions level of e₁ is _________.

Refer to Figure 5.1. The change in damages associated with a shift from MD₁ to MD₂ at an emissions level of e₁is _________.

The height of the marginal damage curve at a particular level of emissions shows

Which Figure above represents a social optimum at e*?

Under what circumstances would a firm with more than one source of production minimize its total costs of production by setting production levels equal at each source?

Describing and explaining economic events that have taken place in the real world is known as ___________.

For a firm with more than one source of emissions, the states that the total costs of meeting a given abatement target will be minimized when the marginal costs of abatement are across sources.

For certain pollutants with a (n) _, emissions or ambient quality up to a certain level cause ___ damages.

A(n) ________ shows how damages are related to the concentration of a waste product contained in the ambient environment.

Which Figure above represents a greater total abatement cost than total damage cost at the socially optimal point of emissions?

Which Figure above represents a marginal damages curve with a threshold?

Which of the above Figures reveals a marginal damage curve that displays a threshold?

Determining a target level of environmental quality is an example of _______.

For a firm with more than one source of output with differing cost structures, its will be minimized when its are equalized across sources.

Refer to Figure 5.1. Total damages associated with damage curve MD₂at an emissions level of e₁ is _________.

For a single, non-accumulative pollutant, when no threshold exists

The study of what ought to be such as determining the socially efficient level of emissions is known as _____________.

The least costly way of reducing emissions for a group of polluting sources is depicted by

A marginal damage function that becomes vertical at high levels of emissions represents _______.

Under what circumstances would a firm with more than one source of emissions minimize its total costs of abatement by setting abatement levels equal at each source?

Quiz 5: The Economics of Environmental Quality

Refer to Figure 5.1. Total damages associated with damage curve MD1 at an emissions level of e1 is _________.

Refer to Figure 5.1. The change in damages associated with a shift from MD1 to MD2 at an emissions level of e1 is _________.

The height of the marginal damage curve at a particular level of emissions shows

Which Figure above represents a social optimum at e*?

Under what circumstances would a firm with more than one source of production minimize its total costs of production by setting production levels equal at each source?

Describing and explaining economic events that have taken place in the real world is known as ___________.

For a firm with more than one source of emissions, the ________ states that the total costs of meeting a given abatement target will be minimized when the marginal costs of abatement are ________ across sources.

For certain pollutants with a (n) _______, emissions or ambient quality up to a certain level cause _________ damages.

A(n) ________ shows how damages are related to the concentration of a waste product contained in the ambient environment.

Which Figure above represents a greater total abatement cost than total damage cost at the socially optimal point of emissions?

Which Figure above represents a marginal damages curve with a threshold?

Which of the above Figures reveals a marginal damage curve that displays a threshold?

Determining a target level of environmental quality is an example of _______.

For a firm with more than one source of output with differing cost structures, its ________ will be minimized when its ________ are equalized across sources.

Refer to Figure 5.1. Total damages associated with damage curve MD2 at an emissions level of e1 is _________.

For a single, non-accumulative pollutant, when no threshold exists

The study of what ought to be such as determining the socially efficient level of emissions is known as _____________.

The least costly way of reducing emissions for a group of polluting sources is depicted by

A marginal damage function that becomes vertical at high levels of emissions represents _______.

Under what circumstances would a firm with more than one source of emissions minimize its total costs of abatement by setting abatement levels equal at each source?

Refer to Figure 5.1. Total damages associated with damage curve MD₁ at an emissions level of e₁ is _________.

Refer to Figure 5.1. The change in damages associated with a shift from MD₁ to MD₂ at an emissions level of e₁is _________.

For a firm with more than one source of emissions, the states that the total costs of meeting a given abatement target will be minimized when the marginal costs of abatement are across sources.

For certain pollutants with a (n) _, emissions or ambient quality up to a certain level cause ___ damages.

For a firm with more than one source of output with differing cost structures, its will be minimized when its are equalized across sources.

Refer to Figure 5.1. Total damages associated with damage curve MD₂at an emissions level of e₁ is _________.