Econo X C A small city has an open space in X +=es/3d8faf7a-7f4e-423e-967d-dd440d76e4f0/5/6rnrrh/tools/assessment/items/1d065957-ec50-43fd-8ea9-...-5%TrueCommand-and-control regulation is typically more efficient than emissions taxes.Answer BankPollution taxes encourage firms to find innovative ways to remove pollution.HFirms generate the same level of pollution regardless of any pollution taxes that are imposed.With a pollution tax, firms must pay a fine if they pollute more than the legally specified amount.Q SearchResources Ex Give Up?FalseAA pollution charge and a pollution tax are the same thing.QHintG

Taxes are financial charges imposed by a government on individuals or entities for various purposes,…

Command-and-control regulation is typically more efficient than emissions taxes. Pollution taxes encourage firms to find innovative ways to remove pollution. A pollution charge and a pollution tax are the same thing. Firms generate the same level of pollution regardless of any pollution taxes that are imposed. With a pollution tax, firms must pay a fine if they pollute more than the legally specified amount.

Command-and-control regulation is typically more efficient than emissions taxes. Pollution taxes encourage firms to find innovative ways to remove pollution. A pollution charge and a pollution tax are the same thing. Firms generate the same level of pollution regardless of any pollution taxes that are imposed. With a pollution tax, firms must pay a fine if they pollute more than the legally specified amount.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following best explains why economists believe that there is an optimal amount of pollution reduction? The marginal cost of reducing pollution is decreasing, while the marginal benefit of reducing pollution is increasing. Economists only think about profits The marginal cost of reducing pollution is increasing, while the marginal benefit of reducing pollution is decreasing. Economists focus on the benefits of reducing pollution and ignore the cost.
Provide examples of public goods or externalities that are provided successfully by market or contractual arrangements.
The market for seasonal flu shots is depicted in the graph. As more people receive flu shots, fewer people catch the flu and potentially pass it on to others. Therefore, the chance of catching the flu decreases for everyone, even those who do not purchase a flu shot. This is an example of a positive externality. The graph contains the private demand curve (D1) and the supply curve. D1 does not take into consideration the social benefit of people getting flu shots. Graph the social demand curve by placing the end points of D2 at the correct locations. Then, indicate the dead weight loss to society by placing the DWL triangle in the correct location on the graph. The Market for Flu Vaccinations D2 (marginal soeial benefit) DWL supply D1 (marginal private benefit) Quantity of flu shots Price ($)
Firms in a polluting industry can be classified in two groups: newer firms with a cleaner technology that can abate pollution at a lower marginal cost M CLA L = (1/2) aL and older firms with dirtier M CAH = aH , where ai is the level of abatement undertaken by firms of type i = L,H. The social marginal benefit of abating pollution from this particular industry is MBA = 120 - A, where A is the aggregate level of abatement in that industry: 1. What Pigouvian tax t will implement the efficient allocation (aL; aH )? Is the resulting allocation an efficient allocation? What is the government’s tax revenue? 2. Suppose that in order to avoid the costly obtention of disaggregate information about individual firms cost, the government just implements a uniform standard aui = A*/2. Is this allocation efficient? If not, what is the deadweight loss?
The table below shows the supply and demand conditions for a furniture factory that pollutes the air. The third column (Qs1) represents a supply curve without accounting for the social cost of pollution. The fourth column (Qs2) represents the supply curve when the firm is required to account for the social cost of pollution. Price QD Qs1 Qs2 $10 450 400 250 $15 440 440 290 $25 430 480 330 $30 420 520 370 $35 410 560 410 Answer the following: a) What is the negative externality in this situation? b) Identify the equilibrium price and equilibrium quantity when we account only for private costs. c) Identify the equilibrium price and equilibrium quantity when we account for the social costs. d) How does accounting for the externality affect the equilibrium price and quantity? JUSTIFY your answer!
Can you explain why the following statement is false? The efficient level of a pollution-emitting activity (e.g., production of a good) is that at which the marginal external cost of pollution is equal to zero.
An example of a positive externality is:a) the profit made from the sale of electric vehicles b) the penalty paid by a coal mining company after it is caught illegally dumping toxic waste into a riverc) knowledge spillovers that result when a maker of microchips invests in research and developmentd) the price paid by an electricity company for an emission certificate on the European Trading Scheme, allowing it to emit a specified level of CO2
CENGAGE MINDTAP Homework #6 (Ch 10 & 11) Consider the market for electric cars. Suppose that a electric car manufacturing facility dumps sludge into a nearby river, creating a negative externality for those living downstream from the facility, Producing additional electric cars imposes a constant per-unit external cost of $245. The following graph shows the demand (private value) curve and the supply (private cost) curve for electric cars. Use the purple points (diamond symbol) to plot the social cost curve when the external cost is $245 per unit. PRICE (Dollars per unit of electric cars) 700 030 560 400 420 280 210 140 70 0 QUANTITY (Units of electric cars) ng cengage.com The market equilibrium quantity is B Supply (Private Cost) Demand (Private Value) Social Cost units of electric cars, but the socially optimal quantity of electric car production is To create an incentive for the firm to produce the socially optimal quantity of electric cars, the government could impose a per unit of…
As abatement efforts increase (pollution is reduced., the marginal benefits from abatement and the marginal costs of abatement decline; rise rise; decline rise; rise decline; decline
The primary source of air pollution in the small town of Smokey, Nevada is a nearby steel mill. The local environmental agency has decided that the mill needs to reduce its emissions because the town's population is located directly downwind from it. Currently the agency is considering three different approaches to reducing pollution from the mill: a technology standard, an emission standard and an emission tax. Why might the owner of the mill prefer an emission standard to a technology standard that would produce the same level of emissions? a Because with emission standards the polluter is more flexible in selecting the technology that will minimize her abatement cost Ob. Because polluters usually try to stick to their existing technology O C. Because it has been proven to be easier to implement O d. Because polluters, as all producers are suspicious about new technologies
Production of Commodity X creates 10 pounds of emissions for every unit of X produced. The demand and supply curves for X are described by the following table: What is the equilibrium price and quantity, and how much pollution will be emitted?
The figure below shows the marginal benefit (demand) of polluting for two firms: Alpha and Beta. Before the introduction of a pollution tax, pollution is free, that is, MC = $0 per ton of emissions. Marginal Benefit (MB) to Firm Tax = $100 0 MB BETA MBALPHA 25 50 75 100 Emissions (tons) The government decides to impose a tax on pollution of $100 per ton of emissions. That is, the per-unit the tax is the marginal cost of polluting. Which of the follow are true? (Select all that are true.) a. As a result of the tax, the total emissions will decrease by 50 units b. The tax was intended to decrease production by 50 units for each firm. c. As a result of the tax, both firms will decrease emissions by the same amount d. After the tax is imposed, Firm Beta will emit 50 tons more pollution than Firm Alpha e. Before the tax is imposed, Firm Beta emitted more pollution than Firm Alpha f. As a result of the tax, total emissions from the two firms will be cut in half g. The amount of tax collected…