Question 1

The following question are based on the following diagram:
 
-It costs society more to allow pollution to take place than it does to reduce pollution in the range

Accepted Answer

The diagram shows that the cost of pollution reduction increases as we move along the x-axis, while the cost of pollution increases at a faster rate. This means that the area between the two curves, which represents the net social cost, is decreasing as we move towards the right side of the graph. Therefore, the range where society would benefit most from reducing pollution is CD.

Question 2

The EPA has estimated that it would cost $60 billion to remove 85 to 90 percent of water pollutants from industrial and municipal sources,but a zero discharge of pollutants would cost about $320 billion.This suggests that

Accepted Answer

The EPA's estimate suggests that the cost of pollution control increases as the desired level of pollution decreases. As the goal becomes more ambitious, it requires greater and more expensive effort to achieve it. This is consistent with the idea of diminishing returns, where additional inputs (in this case, pollution control measures) lead to steadily smaller improvements in the desired output (water quality).

Question 3

From the perspective of economic analysis,society should

Accepted Answer

From an economic perspective, it is not efficient to try to reduce pollution completely to zero as it would be too expensive and impose a large burden on society. Instead, society should aim to reduce pollution to a level where the reduction in social costs equals or exceeds the additional costs associated with the control program. This balance between the costs of pollution and the costs of pollution control is known as the optimal level of pollution. Therefore, option D is the best choice.

Question 4

In commenting on the problems of implementing the provisions of the Clean Air Act for Los Angeles,EPA director William Ruckelshaus noted that

Accepted Answer

The EPA director's comment suggests that implementing the Clean Air Act provisions for Los Angeles would be difficult because it did not allow the EPA to take into consideration the economic costs imposed by the act. This implies that the economic impact of the act was a factor that needed to be considered in implementing its provisions in Los Angeles.

Question 5

Pollution control efforts are justified whenever the marginal social benefits

Accepted Answer

Pollution control efforts should be undertaken when the marginal social benefits (MSB) of controlling pollution exceed the marginal social costs (MSC). This is because the MSB represents the extra benefits to society that result from reducing pollution, whereas the MSC represents the additional costs that society must bear to achieve that reduction. When the MSB exceed the MSC, it means that society as a whole will be better off if pollution control efforts are undertaken.

Question 6

The following table shows the costs to society of allowing certain levels of air pollution as well as the costs of pollution control.What is the optimal level of air pollution in terms of both the costs of pollution and the costs of control?

Accepted Answer

The answer of The following table shows the costs to...

Question 7

-The social cost of pollution equals 4P,where P is the level of pollution,and the cost of pollution control equals 10 - 1P.What is the optimal level of pollution?

Accepted Answer

The optimal level of pollution is where the marginal social cost of pollution equals the marginal cost of pollution control. The marginal social cost of pollution is 4, and the marginal cost of pollution control is -1. So, the optimal level of pollution is where 4 = -1, which is P = 0.

Question 8

-The table above shows the cost to society of allowing a given pollution level (in terms of polluted stream miles)and the cost of pollution control (in millions of dollars).How many polluted stream miles should be tolerated to minimize the total costs of pollution?

Accepted Answer

To minimize total costs, the sum of the cost to society and the cost of pollution control should be minimized. This typically occurs where the marginal cost of pollution control equals the marginal cost of pollution.

Question 9

The most efficient way of reducing greenhouse gases is

Accepted Answer

Implementing carbon taxes is the most efficient way of reducing greenhouse gases as it creates a financial incentive for individuals and companies to decrease their carbon footprint. By placing a tax on carbon emissions, individuals and companies are encouraged to switch to alternative energy sources or reduce their energy consumption, leading to a reduction in greenhouse gas emissions. Additionally, the revenue collected from carbon taxes can be reinvested in renewable energy and climate change mitigation measures.

Question 10

When external diseconomies exist

Accepted Answer

External diseconomies mean that the social costs are higher than the private costs, shifting the supply curve reflecting social costs to the left of the industry supply curve.

Question 11

A sensible pollution control goal for society is to

Accepted Answer

The goal of minimizing the sum of the costs of pollution and the costs of controlling pollution is the most sensible because it takes into account both the economic and environmental factors involved. Eliminating pollution entirely may not be feasible in the short run and could be costly, while allowing pollution if external diseconomies are realized or if the cost of monitoring waste discharge exceeds the effluent fee does not prioritize environmental concerns. Equating the costs of pollution to the costs of pollution control does consider both factors, but it assumes that the costs are equal, which may not always be the case.

Question 12

A basic economic problem encountered when evaluating some of the more recent environmental initiatives,such as proposals designed to halt global warming or reduce acid rain,is that

Accepted Answer

The basic economic problem encountered when evaluating some of the more recent environmental initiatives is that the cost of these initiatives may exceed the estimated value of the benefits. This is known as the cost-benefit analysis and it is a common practice in economics to determine whether a policy or investment is worth the cost. In the case of environmental initiatives, the benefits of reducing pollution or halting global warming may be significant, but the cost of implementing these policies must also be taken into account. If the cost of the policy exceeds the estimated value of the benefits, then it may not be a feasible or efficient solution to the problem.

Question 13

When the United States passed the Marine Mammals Act in the early 1990s because of pressure from environmental groups,it

Accepted Answer

The Marine Mammal Protection Act, which was actually passed in 1972, not the early 1990s, led to controversies including trade disputes. One notable issue was with the "dolphin-safe" tuna labeling and related trade practices, which were challenged as violations of international trade agreements, including those under the World Trade Organization (WTO).

Question 14

The following question are based on the following diagram:
 
-Point C represents the

Accepted Answer

Point C represents the optimal level of pollution, which is the point where the marginal benefit of pollution equals the marginal cost of pollution control. This means that any more pollution control would cost more than the benefits gained from reducing pollution, and any less pollution control would result in more costs from pollution than the costs of control.

Question 15

An appropriate way for government to intervene when external diseconomies exist in an industry is to

Accepted Answer

When external diseconomies exist in an industry, the industry is producing at a level where the marginal social cost (MSC) is greater than the marginal private cost (MPC). To correct this market failure, government intervention is required. One effective way for the government to intervene is by imposing a tax on producers, which will shift the industry supply curve to the left, making the industry's supply curve more nearly reflect the supply curve of a competitive industry by internalizing the external costs. By shifting the supply curve to the left, production will decrease, leading to a reduction in pollution or other negative externalities associated with the industry.

Question 16

During the 1980s,environmentalists

Accepted Answer

Environmentalists accused the Reagan administration of emasculating the EPA (Environmental Protection Agency) by cutting its budget and appointing administrators who were less enthusiastic about environmental protection.

Quiz 9: Pollution and the Environment

The following question are based on the following diagram: -It costs society more to allow pollution to take place than it does to reduce pollution in the range