Which of the following statements aboutexternal costs is TRUE?AEconomics uses the term "externalcost" to describe a spillover effectfrom market activity that is too smallto matter to society.BCDEconomics ignores the environmentalimpact of market activities by callingsuch impact an "external cost.”Economics does not provide guidancefor environmental policy since itstreats any environmental cost as an"external cost".None of the above statements aretrue.

Here's why the other options are incorrect:a) Incorrect: External costs can be significant and have…

Answered: Which of the following statements about…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 41P: Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once...

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Computer models of global climate changecaused by increasing carbon dioxide in the atmosphere predictnot only higher overall temperatures, but also more intense andfrequent heat waves. During the devastating European heatwave in the summer of 2003, between 35,000 and 52,000“excess deaths” occurred. Before taking specific actions toreduce carbon dioxide emissions, economists and politicians tryto estimate the costs. Should excess deaths be included as acost of inaction? If so, what value should we place on a life?
What makes climate change an economic problem? And if it is, how should policy dealwith it?Your answer should include reference to at least three of the following aspects of theproblem:a) Climate change as an externalityb) A carbon tax vs. cap and tradec) Cost-benefit analysisd) Assessing costs to future generationse) Environmental dynamics
QUESTION 7 Choose a wrong statement about uniformly mixed fund pollutants. O The damage caused by uniformly mixed pollutants is relatively insensitive to where the emissions are injected into the atmosphere. A difficulty with emission charge is determining how high the charge should be set in order to ensure that the resulting emission reduction is at the desired level. The policy can focus simply on controlling the total amount of emissions in a manner that minimizes the cost of control. O The cost-effective allocation is found by equating the total control costs of the two sources.
Market-based environmental policy instruments (e.g., carbon tax or tradeable permits) arecentral to national strategies aiming to mitigate environmental degradation. Choose carbon tax as your market-based environmental policy instrument.ii. Provide a formal (algebraic) evaluation of carbon tax's cost-effectiveness.
When U.S. farmers in the Southwest irigate their land, salt in the ground sol leaks into the Colorado River The Colorado River has become so salty that Mexican farmers further down the tiver cannot irrigate their own land and Mexican crops have been devastated, This situation constitutes n negative externality because:O. a) Us.famers consider only their private costs in their decision makingO. b) US. farmers consider only their external costs in their decision makingO. c) Mexican farmers consider only their private costs in their decision makingO. d) the social cost of irrigation exceed s the social benefits U.s. famers were to Internalize this externality. US, famers would irrigate_______as the_____
A ng.cengage.com/static/nb/ui/evo/index.html?deploymentld%3598281247957E 1Gmail E eAccount Quick Car.. B Calendar | Navigate Main Street Comm. 劉 Ta « CENGAGE MINDTAP Homework (Ch 10) Back to Assignment Atempts Keep the Highest/3 Tools 7. Correcting for negative externalities - Taxes versus tradablepermits Power stations emit sultur dioxide as a waste product. This generates a cost to society that is not paid for by the firm; therefore, pollution is a ps negative externality of power production. Suppose the u.S. government wants to correct this market failure by getting firms to internalize the cost of pollution. To da this, the government can charge firms for pollution rights (the right ta emit a given quandity of sulfur dioxide). The following graph ps shows the daly demand for polution rights. Lise the graph input tool to hel you answer the fallowing questions. You wit not be praded on any changes you make to this graph. Note: Once you enter a value in a white feld, the graph and any…
Imagine a scenic canyon, visited by many local people as well as tourists from beyondthe local area. Consider a scenario in which a mining company has proposed to the localauthority that it be closed to the public and put into the production of coal. Thinking interms of economics as a way of adjudicating the relative value of one use of the canyon overthe other, what would you need to know in order to make a comparison or assessment?What kinds of quantitative data would inform your decision, and where might they comefrom? What kinds of things might you need to know that are hard to measure? Once youhave listed the kinds of information and data that might be available to inform this decision, do you think it would be sufficient to making this decision, why or why not?
Suppose that a mayor of a large city believes strongly that education provides great benefits to the community andurges the state government to provide the district with more money. An economist would say that this reflects theMayor's belief that:Asince teachers are overpaid, the district needs more money to hire enough teachers for its classrooms.Bthere are positive external benefits associated with education.Cthere are nontrivial external costs associated with education.Dpublic schools provide a higher quality education than private schools.
Give typing answer with explanation and conclusion Why the market tends to fail when dealing with environmental issues? It is said many externalities in environmental economics have features that are similar to that of public goods. We know that the provision of some public goods such as lighthouse can be solved through the market rather effectively. What makes environmental goods such as clean air different from other public goods such as lighthouse? Why is it more difficult to solve the provision of clear air through the market?
Refer to Table 12.2. The externality created by the refrigerator production was 100. However, once we accounted for both the private and additional external costs, the market price increased by only 50. If the external costs were 100 why did the price only increase by 50 when we accounted for all costs?
Do market demand curves reflect positive externalities? Why or why not?
(a) Explain what is meant by command-and-control in terms of a demand side climate change policy. What are the pros and cons of this as a poliey option? (b) Using a diagram, explain how a carbon tax could help reduce pollution. (c) Using a diagram or diagrams, explain how a cap-and-trade scheme could result in pollution reduction.

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