Question 1

Environmental protection laws strive to:&#10;A)Balance compliance costs with non-compliance costs&#10;B)Prevent irreparable environmental damage&#10;C)Restore natural systems throughout the Earth&#10;D)Regulate behavior of individual agents

Accepted Answer

Environmental protection laws aim at averting irreparable environmental damage. They seek to limit or ban any activity that can lead to severe damage to the environment. By preventing severe and irreversible harm to the environment, environmental protection laws ensure that the environment is preserved for future generations.

Question 2

One challenge to the RPS system is:&#10;A)Policy makers enforcing supplier obligations, expanding regulatory actions.&#10;B)Small producers face significant transaction costs and risks in participating.&#10;C)The RPS system is technology neutral, stimulating competition within states.&#10;D)Production tax credits add benefits for firms participating in RPS.

Accepted Answer

Small producers may face difficulties in participating in the RPS system due to the high transaction costs and risks involved. This can challenge the effectiveness of the system, as it may disproportionately benefit larger producers. The other choices are either potential solutions to this challenge or benefits of the RPS system.

Question 3

The most frequently pled common law tort action in environmental litigation is:&#10;A)Trespass&#10;B)Negligence&#10;C)Safety&#10;D)Nuisance

Accepted Answer

Nuisance is the most frequently pled common law tort action in environmental litigation, as it deals with interference with the use and enjoyment of property by noxious odors, noise, pollution, or other disturbances. Trespass may also be applicable in cases of physical intrusion onto property, but it is less commonly used in environmental litigation. Negligence and safety may be relevant in cases involving personal injury or property damage, but they are not as frequently pled as nuisance.

Question 4

The ________________ require(s) private firms to provide information on issues such as carbon dioxide emissions:&#10;A)Clean Air Act&#10;B)Right to know laws&#10;C)EPA&#10;D)Kyoto Protocol

Accepted Answer

Right to know laws are designed to mandate that businesses disclose certain information, including environmental impacts such as carbon dioxide emissions, to the public. These laws aim to ensure transparency and inform the community about potential environmental and health risks.

Question 5

Based on the chapter, competitive markets often fail because:&#10;A)They fail to communicate vital product information.&#10;B)They focus too heavily on regulations.&#10;C)They let uncertainty hinder strategic choices.&#10;D)They participate in a command-and-control system.

Accepted Answer

Competitive markets can fail when they do not effectively communicate vital product information to consumers, leading to market inefficiencies and failures.

Question 6

One major difference between command-and-control and market-based regulatory systems:&#10;A)Market-based requires the use of new technology.&#10;B)Command-and-control dictates the aggregate amount of allowed pollution.&#10;C)Market-based leaves allocation process to the markets.&#10;D)All of the above

Accepted Answer

The major difference between command-and-control and market-based regulatory systems is that market-based leaves the allocation process to the markets, while command-and-control dictates the aggregate amount of allowed pollution. The statement that market-based requires the use of new technology is incorrect, as both regulatory systems can use technology to achieve environmental goals. Therefore, option D is incorrect.

Question 7

Firms can respond to regulations by:&#10;A)Disregarding&#10;B)Adapting&#10;C)Avoiding&#10;D)All of the above

Accepted Answer

Firms can respond to regulations in various ways, including disregarding them (though this can lead to legal consequences), adapting to comply with them, or finding ways to avoid them through loopholes or relocating activities to jurisdictions with less stringent regulations.

Question 8

What a firm gives up by choosing one course of action instead of another is called a(n):&#10;A)Strategic Flexibility&#10;B)Net Benefit&#10;C)Opportunity Cost&#10;D)Non-Use Value

Accepted Answer

Opportunity cost represents the cost of the next best alternative forgone in making a decision. This is a fundamental concept in economics and decision-making, as firms have to weigh the benefits of one choice against what they give up in terms of alternatives. A represents a firm's ability to adapt to changing conditions, B refers to the positive outcome of a decision, and D is a concept related to ecosystem services and natural resource management.

Question 9

Federal agencies working to support RPS include all of the following except:&#10;A)Department of the Interior&#10;B)Bureau of Land Management&#10;C)Energy Information Administration&#10;D)Bureau of Labor

Accepted Answer

The Bureau of Labor does not have a direct role in supporting the implementation of Renewable Portfolio Standards (RPS). The other options listed (Department of the Interior, Bureau of Land Management, and Energy Information Administration) all have relevant roles in supporting RPS implementation, such as land management for renewable energy development or providing data on renewable energy trends.

Question 10

Which of the following is TRUE:&#10;A)The economic efficiency level of pollution is not zero.&#10;B)At low levels of pollution control, net benefits are high.&#10;C)At high levels of pollution control, net benefits are high.&#10;D)Costs accumulate more rapidly than benefits.

Accepted Answer

The economic efficiency level of pollution is not zero, meaning there is a level of pollution that maximizes net benefits to society. At zero pollution, there may be costs associated with eliminating pollution that outweigh the benefits. B and C are both false, as net benefits are highest at the economic efficiency level, which is not necessarily at low or high levels of pollution control. D is not necessarily true in all cases, as costs and benefits may accumulate at different rates depending on the specific situation.

Deck 3: Environmental Regulation and Its Impact on Organizations