ENVIRONMENTAL ECONOMICS FINAL

ENVIRONMENTAL ECONOMICS FINAL EXAM QUESTIONS WITH CORRECT VERIFIED ANSWERS | 100% PASS (A+ CERTIFIED) In the case of nonuniformly mixed surface pollutants, the cost effective allocation of emission will occur when: Answer the marginal costs of concentration reduction are equal for all firms Which of the following is a characteristic of an efficient property rights structure? a) ambiguity b) Nonenforceability c) uncertainty d) transferability Answer transferability When command and control (CAC) costs are compared to costs under an emission trading permit system for air pollution, most studies have found that: Answer emission trading permit studying is less costly As the cost of harvesting increases, the optimal rotation time (in the infinite planning case) will: Answer increase Which of the following is NOT one of the 7 most important guidelines for conducting a contingent valuation study according to the NOAA panel? a) Use the referendum format b) Remind respondents that a willingness to pay for one program will reduce their ability to buy other things c) Remind users that there are substitutes for the "commodity" d) Use a follow-up survey to ensure understanding of the questions e) Use phone interviews rather than personal interviews Answer e) use phone interviews rather than personal interviews What is one of the primary sources of inefficiency in the current water system in the United States? Answer Too much government subsidies for water projects Consider the situation where a depletable resource is available at a constant marginal cost of extraction and NO substitute resource is available. The marginal user cost will: Answer rise at the same rate as the interest In the western U.S. in the 1800s, the water problems were generally solved by using the: a) Universal trust system b) res Nullius system c) Open access system d) none of the above Answer None of the above solved by using the Prior appropriation system Consider the example where a depletable resource is available at a constant marginal cost of extraction and a substitute resource is infinitely available at a higher constant marginal cost. The marginal cost will: Answer rise at the same rate as the interest rate Public goods are said to be: Answer nonrival and nonexclusive When the discount rate decreases, the efficient allocation of resources is: Answer shifted to the future If a forester is planning to replant a forest after it is harvested, the optimal time to harvest will be _____ than in the case when the stand will not be replanted. Answer Shorter Which of these fishing regulations is inefficient? a) allowing thin-stranded monofilament net b) time retrictions (limiting fishing to only a few days) c) allowing motors on fishing boats d) allocating a fixed amount of individual transferable quotas e) none of the above Answer b) Time restrictions (limiting fishing to only a few days) Under certain conditions: voluntary, negotiated agreements among private parties generating or being affected by externalities will lead to the same (and efficient) resource allocations regardless of how property rights are assigned, as long as transaction costs are negligible. This is known as: Answer The Coase Theorem Many of the freeways in the U.S. are overused because: