ECON 2100 EXAM 2 QUESTIONS AND ANSWERS
The marginal cost of enforcement (MCE) must be added vertically to the MACmkt to
derive the marginal social cost (MSC) of abatement function.
True or False - Answer -True
An environmental standard that specifies a pollution limit along with the equipment to be
used to achieve that limit is called a performance-based standard.
True
False - Answer -False
If an abatement standard is set to satisfy allocative efficiency on a national scale, that
standard would not be optimal at the regional level unless the national MSB and MSC
functions were identical to those at the regional level.
True
False - Answer -True
According to the cost-effective abatement criterion, all polluting sources would abate
pollution up to the point where their individual total abatement cost (TAC) levels were
equal.
True
False - Answer -False
A pollution charge can be implemented as an emission charge.
True
False - Answer -True
In a cap and trade system with two polluters with different costs of marginal abatement
(MAC),the high cost polluter will buy (identify the strict condition) a permit from the low
cost polluter as long as
price charged by the low cost polluter is lower than the MAC of high cost polluter.
price charged by the low cost polluter is equal to the MAC of high cost polluter.
price charged by the low cost polluter is higher than the MAC of high cost polluter. -
Answer -price charged by the low cost polluter is lower than the MAC of high cost
polluter.
Which of the following pollution charges have been commonly proposed to tackle
carbon dioxide emissions.
, Gasoline tax, personal income tax
Carbon tax, corporate income tax
Btu tax
Gasoline tax, carbon tax and Btu tax - Answer -gasoline tax, personal income tax
United States first opted to (partially) ban use of CFC's in 1978.
True
False - Answer -true
A controversy in the climate change debate is the predicted response to increased
production of greenhouse gases.
True
False - Answer -True
The most likely explanation agreed on by scientists as the cause of ozone depletion is
chlorofluorocarbons
halons
chloroform
urban smog - Answer -chlorofluorocarbons
The major issues associated with global air pollution are:
ozone depletion, urban smog
climate change
ozone depletion, climate change
urban smog - Answer -ozone depletion, climate change
A gasoline tax is not considered a better alternative to a carbon tax because it is
not broad based
broad based
more general
not a tax - Answer -not broad based
In the US market for chlorofluorocarbons (CFCs), the phaseout of CFCs lead to ___ in
the price of CFCs.
an increase
a decrease
no change - Answer -an increase
If an individual derives utility from the preservation of an endangered species. This is an
example of ___ of the species.
existence value
user value
direct user value
indirect user value - Answer -existence value
The marginal cost of enforcement (MCE) must be added vertically to the MACmkt to
derive the marginal social cost (MSC) of abatement function.
True or False - Answer -True
An environmental standard that specifies a pollution limit along with the equipment to be
used to achieve that limit is called a performance-based standard.
True
False - Answer -False
If an abatement standard is set to satisfy allocative efficiency on a national scale, that
standard would not be optimal at the regional level unless the national MSB and MSC
functions were identical to those at the regional level.
True
False - Answer -True
According to the cost-effective abatement criterion, all polluting sources would abate
pollution up to the point where their individual total abatement cost (TAC) levels were
equal.
True
False - Answer -False
A pollution charge can be implemented as an emission charge.
True
False - Answer -True
In a cap and trade system with two polluters with different costs of marginal abatement
(MAC),the high cost polluter will buy (identify the strict condition) a permit from the low
cost polluter as long as
price charged by the low cost polluter is lower than the MAC of high cost polluter.
price charged by the low cost polluter is equal to the MAC of high cost polluter.
price charged by the low cost polluter is higher than the MAC of high cost polluter. -
Answer -price charged by the low cost polluter is lower than the MAC of high cost
polluter.
Which of the following pollution charges have been commonly proposed to tackle
carbon dioxide emissions.
, Gasoline tax, personal income tax
Carbon tax, corporate income tax
Btu tax
Gasoline tax, carbon tax and Btu tax - Answer -gasoline tax, personal income tax
United States first opted to (partially) ban use of CFC's in 1978.
True
False - Answer -true
A controversy in the climate change debate is the predicted response to increased
production of greenhouse gases.
True
False - Answer -True
The most likely explanation agreed on by scientists as the cause of ozone depletion is
chlorofluorocarbons
halons
chloroform
urban smog - Answer -chlorofluorocarbons
The major issues associated with global air pollution are:
ozone depletion, urban smog
climate change
ozone depletion, climate change
urban smog - Answer -ozone depletion, climate change
A gasoline tax is not considered a better alternative to a carbon tax because it is
not broad based
broad based
more general
not a tax - Answer -not broad based
In the US market for chlorofluorocarbons (CFCs), the phaseout of CFCs lead to ___ in
the price of CFCs.
an increase
a decrease
no change - Answer -an increase
If an individual derives utility from the preservation of an endangered species. This is an
example of ___ of the species.
existence value
user value
direct user value
indirect user value - Answer -existence value
