Question 1

Government regulation is
A) subject to the same problems of lack of information and lack of incentives for economic efficiency as centrally planned economies.
B) the only reliable way to improve environmental quality.
C) not subject to political concerns when it comes to environmental quality.
D) the most economically efficient way to reduce greenhouse gases.

Accepted Answer

Government regulation can suffer from the same problems as centrally planned economies, such as lack of information and lack of incentives for economic efficiency. This can result in unintended consequences and inefficiencies. While regulation can be an important tool for improving environmental quality, it is not the only reliable way and must be balanced with other economic considerations. Additionally, reducing greenhouse gases can be achieved through a range of policies, not just government regulation.

Question 2

The Endangered Species Act
A) weakened the property rights of landowners.
B) encourages landowners to find new ways to provide habitat for listed species.
C) provides compensation to landowners affected by the law.
D) has not benefited any of the species protected under the act.

Accepted Answer

The answer of The Endangered Species Act
A) weakened the property...

Question 3

When the federal government owns parks that are funded by tax dollars
A) park managers receive full information about visitor desires and make decisions accordingly.
B) the same incentive structure exists for public park managers as private park managers.
C) park managers devote much time and effort to satisfying political desires instead of visitor desires.
D) park managers will be less likely to mismanage the park.

Accepted Answer

When the federal government owns parks that are funded by tax dollars, park managers often have to spend time catering to political desires and meeting government regulations, rather than solely focusing on the desires of park visitors. This can hinder the ability of park managers to make decisions that prioritize visitor experiences and satisfaction.

Question 4

Which of the following is most likely to have the strongest demand for environmental quality?
A) countries with water pollution problems
B) poor countries
C) countries with air pollution problems
D) wealthy countries

Accepted Answer

Wealthy countries are more likely to have the strongest demand for environmental quality as they have the resources and means to prioritize conservation efforts and may have higher expectations for quality of life and amenities. Poor countries may prioritize economic development over environmental concerns, while countries with specific pollution problems may only focus on addressing the issue at hand rather than overall environmental quality.

Question 5

Which of the following is the most efficient way to reduce pollution emissions?
A) Emission standards that cap allowable pollution.
B) Government pollution charges or taxes.
C) Legislated regulations limiting the quantity of emissions allowed by each firm.
D) Enforcement of property rights, when those rights are well-defined and transaction costs are low.

Accepted Answer

The answer of Which of the following is the most...

Question 6

Economic analysis indicates that environmental quality
A) is something that people value, and therefore are willing to pay for.
B) should always be regulated by the government.
C) is something people should be forced to pay for no matter what their income levels.
D) is not important to most people.

Accepted Answer

Economic analysis has shown that people are willing to pay a premium for environmental quality, indicating that it is something they value. This is why markets for environmentally-friendly products, such as electric cars and organic food, have emerged. Therefore, the answer is A.

Question 7

When a park is funded by visitors, but not by taxpayers in general,
A) there will be too few parks, because most people will not pay to use a park.
B) visitors will be better served, because poor service would lead to reductions in revenues.
C) park budgets will decline.
D) park quality will decline.

Accepted Answer

Since visitors are directly funding the park, the park would need to provide good service and amenities to attract visitors and maintain revenue. Poor service could lead to reduced revenue, so the park would work to provide better service to retain visitors. This would result in visitors being better served.

Question 8

The scientific evidence on the causes and consequences of global warming
A) is clear and indisputable.
B) is uncertain and variable.
C) indicates global warming should be stopped regardless of cost.
D) is of no importance to economists.

Accepted Answer

The answer of The scientific evidence on the causes and...

Question 9

Predictions of severe shortages due to impending natural resource depletion
A) are widely accepted by resource economists even though such predictions are a relatively new occurrence.
B) have been wrong in the past, but most resource economists believe that the threat of resource depletion is now far more severe than ever before.
C) are typically made without adequate recognition and consideration of resource price elasticities.
D) typically assume that price elasticities are greater than they really are.

Accepted Answer

The answer of Predictions of severe shortages due to impending...

Quiz 16: Applying the Basics: Special Topics in Economics

Government regulation is

The Endangered Species Act

When the federal government owns parks that are funded by tax dollars

Which of the following is most likely to have the strongest demand for environmental quality?

Which of the following is the most efficient way to reduce pollution emissions?

Economic analysis indicates that environmental quality

When a park is funded by visitors, but not by taxpayers in general,

The scientific evidence on the causes and consequences of global warming

Predictions of severe shortages due to impending natural resource depletion