Which of the following options best describes Coase Theorem? a) Coase theorem corrects for market failure when externalities occur by assigning well- defined property rights. b) Coase theorem states that by capping the total amount of emissions that can be released, an environmentally optimum pollution level will occur. c) Coase theorem creates a market of tradeable pollution permits. d) Coase theorem assigns a per-unit tax an emissions that all polluters must pay. How do farm bill programs incentivize private landowners to conserve natural resources? a) The farm bill taxes farmers on a per-output basis. Thus, farmers are incentivized to produce less, lowering their creation of negative externalities. b) The farm bill subsidizes farmers to transition from animal husbandry to row cropping, reducing the amount of concentrated feed lots that create water pollution. c) The farm bill provides tax breaks and subsidies to landowners that use conservation- minded practices in agricultural and land-use activities. d) The farm bill funds domestic nutrition and crop insurance programs and does little for private land conservation.

Which of the following options best describes Coase Theorem? a) Coase theorem corrects for market failure when externalities occur by assigning well- defined property rights. b) Coase theorem states that by capping the total amount of emissions that can be released, an environmentally optimum pollution level will occur. c) Coase theorem creates a market of tradeable pollution permits. d) Coase theorem assigns a per-unit tax an emissions that all polluters must pay. How do farm bill programs incentivize private landowners to conserve natural resources? a) The farm bill taxes farmers on a per-output basis. Thus, farmers are incentivized to produce less, lowering their creation of negative externalities. b) The farm bill subsidizes farmers to transition from animal husbandry to row cropping, reducing the amount of concentrated feed lots that create water pollution. c) The farm bill provides tax breaks and subsidies to landowners that use conservation- minded practices in agricultural and land-use activities. d) The farm bill funds domestic nutrition and crop insurance programs and does little for private land conservation.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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