Deck 18: Managing Municipal Solid Waste

Question 1

In the United States, MSW generation

A) has been stable for the past several decades
B) growth over time has not been met with improved waste management practices
C) has sharply declined over time
D) per capita shows a continual decrease since 1980

Answer 1

B

Question 2

If there is a negative externality associated with consumption of a product, the MSB of that product is below the MPB.

Answer 2

True

Question 3

MSW markets achieve efficiency at the point where MPC = MPB as long as there are no externalities.

Answer 3

True

Question 4

In the United States, the composition of MSW is categorized both by materials and by products.

Question 5

If MSW services are priced in a way that is independent of the quantity of waste generated, that pricing system is called fixed fee or flat fee.

Question 6

When a flat fee pricing system is used, the MPC is coincident with the horizontal axis.

Question 7

One of the fastest growing segments of the MSW stream is plastics.

Question 8

In a pay-as-you-throw (PAYT) program, the price per unit of MSW services can be based on either the weight or the volume of waste generated.

Question 9

EPA's integrated waste management system promotes techniques and programs aimed at recycling, source reduction, combustion, and land disposal, in that order.

Question 10

Municipal solid waste (MSW)

A) refers to the collection of hazardous and toxic wastes disposed of in local communities
B) can cause problems if improperly managed
C) poses no health or ecological risks to society
D) is a problem only in developing countries

Question 11

The recycling rate in the United States is higher than that of any other nation in the world.

Question 12

A bag-and-tag system is a type of PAYT program

Question 13

The highest proportion of products in the MSW stream is consumer electronics.

Question 14

A front-end, or retail, disposal charge is a fee levied at disposal on the quantity of waste generated.

Question 15

According to the textbook application, the Duales System Deutschland AG (DSD) was formed in response to requirements of Germany's Packaging Ordinance of 1991.

Question 16

Municipal solid waste includes nonhazardous and hazardous wastes disposed of in local communities.

Question 17

A back-end charge is implemented as a price per household.

Question 18

The city whose unit pricing program is considered to be the prototype is Philadelphia.

Question 19

According to available U.S. trend data, the number of landfills in the country has been increasing since 1960.

Question 20

Unit pricing communicates that a higher level of waste services is associated with a nonzero marginal cost of production.

Question 21

The demand for MSW services

A) represents the production decisions of firms providing disposal or incineration services
B) would likely be lower for higher income households
C) would tend to be lower for more environmentally aware consumers
D) all of the above
E) none of the above

Question 22

In the United States, plastic wastes

A) are among the fastest growing segment of MSW
B) have risen steadily since 1980
C) sometimes contain plasticizers and stabilizers, which may include toxics
D) all of the above
E) none of the above

Question 23

Use the following for any or all of Questions below. Consider the following model of the municipal solid waste (MSW) services market in the city of Houston.
MSC = 1.5 + 1.25Q MSB = 30 - 2.5Q
MEC = 0.75Q MEB = 0
where Q is the number of trash containers serviced per household per month.

-Assuming that Houston uses a flat fee pricing system for trash services, the equilibrium quantity of MSW services provided is

A) 12
B) 1.2
C) 0
D) 3

Question 24

According to RCRA, state governments must

A) develop a waste management plan subject to certain federal requirements
B) establish a fixed recycling rate for all MSW materials
C) pass laws to set MSW recovery rates
D) use deposit/refund systems for packaging and containers

Question 25

Suppose you are a public official responsible for setting a retail disposal charge on antifreeze. Estimated marginal benefit and cost functions for antifreeze are as follows:
MPB = 10.0 - 0.5Q MPC = MSC = 1.0 + 0.4Q
MSB = 10.0 - 1.1Q,
where MPB, MSB, and MPC are measured in dollars per gallon, and Q is in millions of gallons.
a. Identify the Marginal External Benefit (MEB) function, and briefly explain what this function is measuring.
b. In the absence of government intervention, find the equilibrium price (P_C) and Quantity (Q_C) being exchanged in the antifreeze market?
c. Determine the retail disposal charge that will produce an efficient allocation of antifreeze.

Question 26

Use the following for any or all of Questions below. Consider the following model of the municipal solid waste (MSW) services market in the city of Houston.
MSC = 1.5 + 1.25Q MSB = 30 - 2.5Q
MEC = 0.75Q MEB = 0
where Q is the number of trash containers serviced per household per month.

-The dollar value of a waste-end charge that would achieve efficiency in this market is

A) $7.60
B) $11
C) $9.5
D) none of the above

Question 27

Use the following for any or all of Questions below. Consider the following model of the municipal solid waste (MSW) services market in the city of Houston.
MSC = 1.5 + 1.25Q MSB = 30 - 2.5Q
MEC = 0.75Q MEB = 0
where Q is the number of trash containers serviced per household per month.

-A flat fee pricing system for MSW services

A) ignores the positively sloped MPC of MSW services
B) causes an underallocation of resources to MSW services
C) means that demanders pay nothing for MSW services
D) provides an incentive for waste reduction

Question 28

State officials are establishing a deposit/refund system for batteries. Marginal costs and benefits have been estimated to be:
MPC = 5 + 0.5Q $\quad$$\quad$ MPB = MSB = 20 - 0.5Q
MSC = 5 + 0.7Q,
where Q is in millions, and the marginal cost and benefit values are in dollars per battery.
a. Determine the deposit/refund amount that achieves an efficient solution.
b. Explain the economics of why the refund might be set higher than the deposit.

Question 29

In a deposit-refund system,

A) the refund component compensates the consumer for proper waste disposal or recycling activities
B) the deposit component should be set equal to the MSC of illegal waste production
C) the costs of monitoring and enforcement are higher than if a pollution charge were used
D) actual polluters are not penalized for decisions that pose a risk to the environment

Question 30

Which of the following statements about deposit/refund systems is INCORRECT?

A) Most deposit/refund systems in the United States are used for beverage containers and lead-acid batteries.
B) Some nations use deposit/refund systems for automobile bodies.
C) The deposit is imposed at the time of purchase like a retail disposal charge.
D) To be a viable system, the refund must be exactly equal to the deposit.

Question 31

In the United States, the recovery rate for plastic wastes

A) has been declining as the use of plastics has been decreasing over time
B) has been rising because of low-cost methods for sorting by resin content
C) is waning because of the absence of lucrative markets for all recycled plastics
D) is generally low because of costly steps in the plastic recycling process

Question 32

The "Green Dot Program" is

A) an international law to reduce plastics in packaging
B) a private plan in Germany for collection and recycling of packaging
C) a waste management plan operated by the German government
D) a model waste program because of its low start-up and operating costs

Question 33

In terms of nonhazardous waste, the federal government is responsible for

A) every aspect of nonhazardous waste management
B) setting recycling rates for each state
C) establishing markets for recovered MSW
D) setting minimum criteria for sanitary landfills and other land disposal sites

Question 34

Electronics wastes are a potential problem because

A) recovery rates have been declining
B) consumption of electronics products and hence waste generation are rising over time
C) some contain toxic materials
D) all of the above
E) (b) and (c) only

Question 35

Use the following information for any or all of Questions .
Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions:
MSB = 12 - 0.4Q MPB = 12 - 0.3Q MSC = MPC = 2 + 0.1Q

-The dollar value of a retail (or front-end) disposal charge needed to restore efficiency to this market would be

A) $4
B) $2
C) $6
D) $20

Question 36

Use the following information for any or all of Questions .
Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions:
MSB = 12 - 0.4Q MPB = 12 - 0.3Q MSC = MPC = 2 + 0.1Q

-In the absence of environmental policy, the number of tires produced in a competitive market is

A) 20 million
B) 25 million
C) 4 million
D) none of the above

Question 37

Suppose that Sweden imposes a retail disposal charge on household batteries. To assure that allocative efficiency is achieved, this charge should be set equal to

A) the vertical distance between MSB and MPB at Q_C
B) the marginal social benefit at Q_E
C) the MPC associated with battery production
D) the ‒MEB at the efficient equilibrium

Question 38

Use the following information for any or all of Questions .
Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as follows, where Q is in millions:
MSB = 12 - 0.4Q MPB = 12 - 0.3Q MSC = MPC = 2 + 0.1Q

-Based on this model, it is apparent that there is a

A) negative production externality
B) positive external benefit
C) consumption externality measured as MEB = - 0.1Q
D) negatively sloped MEC function

Question 39

Pay-as-you-throw (PAYT) programs, also known as unit pricing schemes,

A) are uncommon in the United States
B) lack incentives because they are strictly command-and-control in approach
C) can be implemented using flat rate pricing or variable rate pricing
D) none of the above

Question 40

Available data on the generation of MSW in the United States indicates that

A) durable goods represent the largest proportion by weight of all product groups
B) plastics are the largest proportion by weight across all materials groups
C) containers and packaging are the largest proportion by weight of all product groups
D) none of the above