Question 1

The marginal cost of reducing pollution is:

Accepted Answer

Marginal cost refers to the additional cost of producing one more unit of a good or service. In the case of reducing pollution, the marginal cost would refer to the cost of reducing pollution by a small increment. For example, the cost of reducing pollution by 10% vs. reducing it by 20%. Therefore, option A is the correct answer. B is incorrect because it refers to the cost of eliminating pollution entirely, which is not the same as the marginal cost. C is incorrect because it refers to the price of ethanol, which may be a cleaner fuel than gasoline, but it does not relate to the marginal cost of reducing pollution. D is incorrect as it is a statement that doesn't relate to the marginal cost of reducing pollution.

Question 2

The environment is a:

Accepted Answer

A

Question 3

Agriculture results in:

Accepted Answer

Agriculture often results in negative externalities such as air and water pollution from pesticide and fertilizer use, as well as soil erosion. These negative externalities can have harmful effects on the environment and surrounding communities.

Question 4

Modern agriculture makes use of:

Accepted Answer

Modern agriculture makes use of all of the options provided, including agrochemicals, fertilizers, and machinery and equipment. They are used to increase crop yields, improve efficiency, and reduce costs, all of which help to feed the growing global population.

Question 5

The environment is likely to lead to government intervention in:

Accepted Answer

The answer of The environment is likely to lead to...

Question 6

The modern environmental movement was started by:

Accepted Answer

Rachel Carson is widely credited with starting the modern environmental movement with the publication of her book "Silent Spring" in 1962. The book raised public awareness about the dangers of pesticides and the impact of human actions on the natural world. This led to the formation of the Environmental Protection Agency (EPA) in 1970 and the passage of several key environmental laws, including the Clean Air Act and Clean Water Act. While individuals such as Al Gore and groups like hippies in California played important roles in promoting environmentalism, it was Rachel Carson who is recognized as the catalyst for the modern environmental movement. Richard Nixon also played a role in promoting environmentalism through the creation of the EPA, but he was not the initiator of the movement itself.

Question 7

Rachel Carson's book, "Silent Spring" was:

Accepted Answer

"Silent Spring" was both widely admired for its influence on the environmental movement and widely criticized by chemical companies and their supporters for its portrayal of the negative effects of pesticides on the environment.

Question 8

The tragedy of the commons occurs when:

Accepted Answer

The tragedy of the commons refers to the overuse of a publicly owned resource by individuals who act in self-interest and do not consider the long-term consequences for the resource or the community. As the resource becomes depleted, everyone suffers the consequences, leading to a tragic outcome.

Question 9

To be efficiently used, a resource is:

Accepted Answer

The answer of To be efficiently used, a resource is:
...

Question 10

An externality occurs when:

Accepted Answer

An externality can occur as a result of production of a good or consumption of a good, hence it can be either A or B.

Question 11

An externality can be:

Accepted Answer

An externality can be both positive and negative. A positive externality occurs when a third party benefits from the production or consumption of a good or service, such as a park creating a positive impact on property values in the surrounding area. A negative externality occurs when a third party is harmed by the production or consumption of a good or service, such as pollution from a manufacturing plant affecting the health of nearby residents.

Question 12

Education is likely to be a:

Accepted Answer

Education is likely to be a positive externality as it benefits not only the individual receiving the education but also the society as a whole, leading to an overall increase in human capital and productivity.

Question 13

Marginal Revenue Product is:

Accepted Answer

The answer of Marginal Revenue Product is:
...

Question 14

Marginal Factor cost is:

Accepted Answer

Marginal factor cost refers to the additional cost incurred when an additional input factor of production is used. It is the cost of employing one more unit of any input factor of production, such as labor or capital. Hence, option D is the correct choice.

Question 15

Overutilization of a resource typically occurs:

Accepted Answer

Overutilization of a resource can occur for various reasons. When there is a tragedy of the commons, people tend to overuse a shared resource because they don't bear the costs of their actions. Lack of cost for using a resource can lead to overuse because individuals don't have any financial incentive to conserve it. Publicly owned resources can also be overexploited because the responsibility for maintaining them is diffuse, and nobody feels ownership over them. Therefore, all of the options listed in the answers can lead to overutilization of a resource.

Question 16

Tragedy of the Commons occurs when:

Accepted Answer

Tragedy of the Commons occurs when private individuals act rationally according to their own self-interest, leading to the depletion or degradation of a shared resource.

Question 17

Examples of shared resources that are candidates for a tragedy of the commons:

Accepted Answer

The answer of Examples of shared resources that are candidates...

Question 18

Tragedy of the commons occur in:

Accepted Answer

Tragedy of the commons can occur in any economic system, as it refers to a situation where a common resource is overused or depleted because individuals act in their own self-interest rather than considering the long-term consequences for the group. The tragedy of the commons is a real-world phenomenon that can be observed in a variety of contexts, such as overfishing, deforestation, or water pollution.

Question 19

Solutions to the tragedy of the commons include:

Accepted Answer

There is no one best solution to the tragedy of the commons as each situation may require a different approach. Privatization may work for resources that can be easily divided and controlled, while regulation may be more effective for resources that are difficult to privatize. Permits to use the resource may help limit the amount of usage and prevent overexploitation. Therefore, a combination of solutions, such as privatization, regulation, and permits, may be needed to effectively manage the tragedy of the commons.

Question 20

An externality occurs when:

Accepted Answer

An externality occurs when a third party is affected by a market transaction. This means that someone who is not directly involved in buying or selling a good or service is impacted by the transaction. For example, pollution from a factory may impact the health of nearby residents, which is an externality. A consumer's satisfaction or a producer's profit are not externality issues. Nonmarket transactions are not relevant to this question because the question specifically refers to a market transaction.

Quiz 15: Economics, Agriculture, and the Environment

The marginal cost of reducing pollution is:

The environment is a:

Agriculture results in:

Modern agriculture makes use of:

The environment is likely to lead to government intervention in:

The modern environmental movement was started by:

Rachel Carson's book, "Silent Spring" was:

The tragedy of the commons occurs when:

To be efficiently used, a resource is:

An externality occurs when:

An externality can be:

Education is likely to be a:

Marginal Revenue Product is:

Marginal Factor cost is:

Overutilization of a resource typically occurs:

Tragedy of the Commons occurs when:

Examples of shared resources that are candidates for a tragedy of the commons:

Tragedy of the commons occur in:

Solutions to the tragedy of the commons include:

An externality occurs when: