1. Transactions costs are defined to be the costs of: Transactions costs are def
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1. Transactions costs are defined to be the costs of: Transactions costs are defined to be the costs of: a. finding and obtaining offsets. b. negotiating and enforcing contracts. c. eliminating market and government failures. d. complying with environmental regulations. 2. The environmental approach found in the Clean Air Act of 1990 is: The environmental approach found in the Clean Air Act of 1990 is: a. a thousand points of light. b. price caps. c. command-and-control regulation. d. marketable pollution permits. 3. When negative externalities like pollution exist, competition leads to: When negative externalities like pollution exist, competition leads to: a. too few goods being bought and sold. b. a socially efficient outcome. c. more production than would be efficient. d. a market equilibrium price that is too high. 4. An example of the command-and-control approach to environmental policy is: An example of the command-and-control approach to environmental policy is: a. allowing coal producers to buy and sell permits to allow CFC emissions. b. none of the above. c. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole). d. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard. 5. The ozone layer: The ozone layer: a. is another term for the greenhouse effect. b. has been damaged as a result of the ban on CFCs. c. has been damaged as a result of the Montreal Protocol. d. protects us from ultraviolet rays which can cause cancer and blindness. 6. As a general rule, if pollution costs are external, firms will produce: As a general rule, if pollution costs are external, firms will produce: a. too much of a polluting good. b. an optimal amount of a polluting good. c. too little of a polluting good. d. cannot be determined without additional information. 7. Incentive-based regulatory approaches: Incentive-based regulatory approaches: a. provide less flexibility than the command-and-control approach. b. require that the government specify certain types of pollution control technology that firms must adopt. c. tend to hurt wealthier people more than poor people. d. are viewed favorably by most economists as a way to control pollution. 8. According to most economists, reducing automobile emissions to zero would be: According to most economists, reducing automobile emissions to zero would be: a. inefficient. b. optimal. c. beneficial. d. impossible. 9. From an economic perspective, the socially best amount of pollution control is that amount in which: From an economic perspective, the socially best amount of pollution control is that amount in which: a. the external costs equal the external benefits. b. there is zero pollution. c. the private marginal costs are equal to the private marginal benefits. d. the private plus external marginal costs are equal to the private plus external marginal benefits. e. the private plus external marginal costs are less than the private plus external marginal benefits. 10. The costs of an economic activity borne by the producers are: The costs of an economic activity borne by the producers are: a. the full resource costs of an economic activity. b. all of the above. c. private costs. d. always less than social costs. 11. Negative externalities impose most of their costs: Negative externalities impose most of their costs: a. directly on consumers of polluting processes. b. on individuals other than consumers of the polluting product. c. only in large cities. d. whenever individual health is harmed in the production process. 12. People are unlikely to choose to pay extra for a low-emissions automobile, because they: People are unlikely to choose to pay extra for a low-emissions automobile, because they: a. cannot afford the extra expense of "green" technology. b. would have to sacrifice fuel efficiency and automotive performance. c. are better off "free-riding" on others' attempts to reduce emissions. d. do not fully understand the environmental benefits of lower emissions. 13. A government policy that charges coal producers a fee per ton of coal produced (an "effluent charge") where the fee is determined by the amount of pollutants discharged into the air or water, will lead to a(an): A government policy that charges coal producers a fee per ton of coal produced (an "effluent charge") where the fee is determined by the amount of pollutants discharged into the air or water, will lead to a(an): a. a and c are correct. b. decrease in the market equilibrium quantity of coal produced. c. increase in the market equilibrium price of coal. d. decrease in the market equilibrium price of coal. 14. Suppose a firm wants to build a new factory that would add pollution to an already polluted area. Under an offset program, the firm must: Suppose a firm wants to build a new factory that would add pollution to an already polluted area. Under an offset program, the firm must: a. install scrubbers and other government-mandated equipment. b. purchase pollution permits from the government. c. pay a tax which depends on the amount of pollution created. d. reduce or eliminate an old pollution source in the area. 15. Command-and-control regulation, as compared to incentive-based regulation is: Command-and-control regulation, as compared to incentive-based regulation is: a. efficient in the short run and in the long run. b. efficient in the short run, but not in the long run. c. inefficient in the short run and long run. d. inefficient in the short run, but efficient in the long run.Explanation / Answer
Kindly make it clear and visible, its creating confusion only, make 2 parts of your question than up load, no one can answer in that sense please. thanks
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