Question 1

Voluntarism in recycling garbage
A)generally has not been successful.
B)works only where there is surveillance.
C)increases the cost of recycling waste.
D)has worked best of all recycling program alternatives.

Accepted Answer

Voluntarism in recycling often struggles because it relies on individuals choosing to participate without any external pressure or incentive, leading to lower participation rates compared to programs with mandates or incentives.

Question 2

Which of the following is not part of the pollution problem?
A)The absence of markets for goods like clean air and clean water
B)The lack of well-defined property rights to clean air and clean water
C)The unreliability of voluntary programs to cut pollution
D)The willingness of citizens to take steps to reduce detrimental externalities

Accepted Answer

The willingness of citizens to take steps to reduce detrimental externalities is not a part of the pollution problem. On the contrary, it can be a part of the solution. The other options, A, B, and C, are all factors that contribute to pollution as they create a situation where it is cheaper for companies to pollute than to clean up their emissions.

Question 3

The external costs of cigarettes are related to the health problem smoking produces for both smokers and nonsmokers. One estimate places these costs at 29 cents per pack. Presently, sales and excise taxes on cigarettes average about 37 cents per pack. These estimates suggest that (i)cigarette consumption is below the optimal or efficient quantity; (ii)cigarette taxes should be reduced.
A)i and ii
B)i but not ii
C)ii but not i
D)neither i nor ii

Accepted Answer

The answer of The external costs of cigarettes are related...

Question 4

Which of the following is an advantage to the pollution-rights approach to environmental quality?
A)Polluters are compelled to clean up completely.
B)Polluters have appropriate incentives to clean up.
C)This is a method of direct government regulation.
D)Compliance with legal guidelines is discretionary.

Accepted Answer

The pollution-rights approach provides polluters with economic incentives to reduce pollution and encourages them to invest in pollution reduction technology. This can result in more cost-effective solutions and a faster reduction in emissions compared to direct government regulation. However, it does not necessarily compel polluters to clean up completely or ensure complete compliance with legal guidelines.

Question 5

The external costs of alcohol consumption are related to, among other things, death and injury related to auto accidents caused by drunk drivers. These costs have been estimated to be about 47 cents per ounce of alcohol consumed. Taxes on alcohol amount to 23 cents per ounce. This suggests that alcohol consumption is (i)greater than the efficient or optimal amount; (ii)should be reduced to zero to eliminate the externality.
A)i and ii
B)i not ii
C)ii not i
D)neither i nor ii

Accepted Answer

The external costs suggest that the current level of alcohol consumption is greater than the efficient amount because the taxes (23 cents) do not fully cover the external costs (47 cents), indicating that consumption is higher than what would be socially optimal. However, it does not imply that consumption should be reduced to zero, as some level of consumption might still be socially acceptable or beneficial, and the goal is typically to internalize the external costs, not eliminate the activity entirely.

Question 6

By providing free garbage removal, a community
A)discourages activities that produce detrimental externalities.
B)disincentivizes citizens from recycling.
C)leads citizens to throw out less garbage than is socially optimal.
D)raises the opportunity cost of recycling.

Accepted Answer

The answer of By providing free garbage removal, a community
A)discourages...

Question 7

When society relies on voluntarism to resolve environmental problems it
A)oftentimes is very successful.
B)is an unreliable option.
C)is more effective than pollution charges.
D)is more effective than pollution allowances.

Accepted Answer

Reliance on voluntarism to address environmental problems is not a dependable option as it depends solely on individuals or organizations to take action, often leading to inconsistent and insufficient efforts.

Question 8

To protect the environment, governments in the United States have mainly used
A)legally enforceable direct controls on pollution.
B)taxes on goods whose production creates pollution.
C)direct taxes on emissions.
D)discretionary guidelines suggested to polluting firms.

Accepted Answer

Governments in the United States have mainly used legally enforceable direct controls on pollution such as the Clean Air Act and the Clean Water Act, which set emissions standards and limits on pollution levels for various industries. These laws also authorize government agencies to monitor and enforce compliance with the standards through inspections and fines for noncompliance.

Question 9

Most economists agree that exclusive reliance on direct controls
A)is more advantageous than voluntarism and emissions taxes.
B)has been accepted by most polluting firms.
C)is cheaper than any other enforcement mechanism.
D)will penalize firms that can be more efficient using other controls.

Accepted Answer

Most economists believe that relying solely on direct controls will penalize firms that can implement more efficient controls. This is because direct controls often mandate specific technologies or practices, which may not be the best fit for every firm, leading to additional costs and decreased efficiency. Therefore, alternative mechanisms such as emissions taxes or market-based mechanisms are often seen as superior, as they provide firms with flexibility to find the most cost-effective solutions.

Question 10

The position of the supply curve in the market for garbage removal
A)is irrelevant since the cost is fixed.
B)depends on the marginal cost of garbage removal.
C)depends on the demand for garbage removal services.
D)is unaffected by taxes levied per household amount of garbage.

Accepted Answer

The position of the supply curve in the market for garbage removal depends on the marginal cost of garbage removal. As the cost of removing garbage increases, the supply curve will shift upward, reflecting the higher cost of providing the service. This can happen due to a variety of factors, including increases in labor costs, fuel costs, or landfill fees. Therefore, the position of the supply curve is not fixed and depends on the cost of providing the service.

Question 11

Which of the following statements about waste disposal is not true?
A)Raw material that has been used must be recycled or disposed.
B)The physical law of conservation of matter dictates that objects like petroleum can be transformed, but cannot simply vanish.
C)The simplest way of dealing with waste is through incineration.
D)The amount of recycling in the United States and European Union has risen over time.

Accepted Answer

Incineration is not the simplest way of dealing with waste as it can release harmful pollutants into the air and contribute to climate change. In fact, the preferred method is to reduce waste at the source, reuse materials when possible, and recycle as much as possible.

Question 12

Voluntary programs for reducing pollution
A)have been more successful in the United States in encouraging recycling than any other type of program.
B)are most appropriate when surveillance and enforcement are impractical.
C)work most reliably when voluntary reduction of pollution over a long period is encouraged.
D)are enforced by legal authority.

Accepted Answer

Voluntary programs for reducing pollution are most appropriate when surveillance and enforcement are impractical. These programs work best when companies and individuals are willing to participate out of a sense of social responsibility, rather than being forced to comply with legal mandates. These programs can include initiatives like green business certification programs or voluntary reduction of energy consumption. However, without proper monitoring and enforcement, voluntary programs may not be as effective in achieving their pollution reduction goals.

Question 13

Direct controls
A)rely on the criminal justice system for enforcement.
B)will be successful if a penalty is put in place.
C)can easily be enforced.
D)is a comparable method to emissions taxes.

Accepted Answer

Direct controls rely on the criminal justice system for enforcement, making it the best choice among the given options. Simply putting a penalty in place may not be enough to ensure compliance, and direct controls are often difficult to enforce without the support of the criminal justice system. Direct controls are not comparable to emissions taxes, as they involve a different method of regulation.

Question 14

Which of the following has also been called the command and control approach?
A)Direct controls
B)Voluntary compliance
C)Tradable emissions permits
D)Taxes on pollution

Accepted Answer

The direct controls approach has also been called the command and control approach because it involves the government directly regulating and enforcing specific actions or behaviors by businesses or individuals.

Question 15

The legal system imposes large financial penalties on firms caught violating Environmental Protection Agency guidelines. The EPA's standards program is thus an example of a
A)market-based approach to reducing pollution.
B)system of emissions taxes.
C)system of emissions permits.
D)direct-control system enforced through the courts.

Accepted Answer

The legal system imposing large financial penalties on firms caught violating Environmental Protection Agency guidelines is an example of a direct-control system enforced through the courts. It involves direct regulation and enforcement by imposing penalties on pollution violators. This is different from market-based approaches, such as emissions taxes or emissions permits, which provide economic incentives for firms to reduce pollution.

Question 16

Suppose that because of climatic conditions, the smog levels in Los Angeles suddenly soar to dangerous levels. The most successful policy in this case would be
A)direct controls to limit driving.
B)taxes on drivers at rush hours.
C)voluntary cooperation to reduce driving.
D)removal of autos with excessive emissions.

Accepted Answer

The answer of Suppose that because of climatic conditions, the...

Question 17

Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?
A)Taxes on pollution
B)Voluntary compliance
C)Tradable emissions permits
D)Direct controls like legal ceilings

Accepted Answer

The answer of Which basic approach to environment policy may...

Question 18

Voluntarism includes methods for dealing with pollution that
A)carry no legal authority.
B)assume the public has been made aware of the environmental damage they are responsible for.
C)involve trying to coerce polluters to reduce or eliminate pollution voluntarily.
D)rely on neighborhood vigilantism.

Accepted Answer

The answer of Voluntarism includes methods for dealing with pollution...

Question 19

If the price of garbage removal rises, people will
A)demand a higher quantity of garbage removal.
B)take less waste to recycling centers.
C)repair broken items if the cost to do so is higher than throwing them away.
D)take actions to avoid paying the higher price.

Accepted Answer

If the price of garbage removal rises, people are likely to take actions to avoid paying the higher price. This could include reducing their overall waste production, composting, reusing items, or finding alternative solutions for disposing of their garbage.

Question 20

In North Carolina, a car must pass an emissions test before it can be registered. The emissions test costs $20 per car. This system is an example of
A)direct controls on pollution.
B)a per-unit emissions tax.
C)a "license to pollute."
D)subsidies for nonpollution.

Accepted Answer

This system is an example of direct controls on pollution because the emissions test is a regulation that requires all cars to meet certain standards before they can be registered. It is not a per-unit tax, a license to pollute, or a subsidy for nonpollution.

Quiz 16: Externalities, Externaliteis, the Environment, and Natural Resources

Voluntarism in recycling garbage

Which of the following is not part of the pollution problem?

Which of the following is an advantage to the pollution-rights approach to environmental quality?

By providing free garbage removal, a community

When society relies on voluntarism to resolve environmental problems it

To protect the environment, governments in the United States have mainly used

Most economists agree that exclusive reliance on direct controls

The position of the supply curve in the market for garbage removal

Which of the following statements about waste disposal is not true?

Voluntary programs for reducing pollution

Direct controls

Which of the following has also been called the command and control approach?

The legal system imposes large financial penalties on firms caught violating Environmental Protection Agency guidelines. The EPA's standards program is thus an example of a

Suppose that because of climatic conditions, the smog levels in Los Angeles suddenly soar to dangerous levels. The most successful policy in this case would be

Which basic approach to environment policy may be the only workable solution in brief but serious emergencies that do not allow for time to plan and enact a systematic program?

Voluntarism includes methods for dealing with pollution that

If the price of garbage removal rises, people will

In North Carolina, a car must pass an emissions test before it can be registered. The emissions test costs $20 per car. This system is an example of