Which one does not belong to the externalities contributed by oil? a. Emissions that pollute the environment. b. National security c. Hydrocarbons that potentially contribute to climate d. Mercury emission from burning oil to produce electricity.

Many economists would consider an efficient level of pollution control to occur where the marginal benefit of reducing pollution is ____________ the marginal cost of reducing pollution. a. greater than  b. equal to  c. less than

Question Completion Status: The market below has an externality. Which area represents the total cost or benefit of the externality if Qo units are produced and consumed? A H D. MSB Q (If you can't see the graph or want to see a larger version then click here.) O C+E Он O F+G O A+B+D

A positive externality results when   A. someone pays for a good or service even though she is not directly affected by the production or consumption of it.   B. people who are not directly involved in producing or paying for a good or service benefit from it.   C. economists are sure that a good or service provides benefits to consumers.   D. people who live in one country benefit from the production of a good or service that occurs in another country.

What is an external benefit? An external benefit is a benefit that OA. always equals external cost OB. experiences increasing marginal returns C. affects someone other than the buyer of a good OD. is greatest at the equilibrium point

Positive externalities a. can be internalized with a corrective tax. b. result in an efficient equilibrium quantity. c. result in smaller than efficient equilibrium quantity. d. result in a larger than efficient equilibrium quantity.

A system that employs saleable licenses that permit bearers to emit limited quantities of pollutants is called: cap and trade. emission standards. O pollution quotas. the marginal social benefit to producers.

38. Negative externalities are also called a. positive externalities. b. external benefits. c. external costs.

What should the government set their corrective tax to if they want to eliminate 7 units of pollution?

4. The advantages of command-and-control environmental regulations used in the 1970's include: a. the provision of incentives to go beyond prescribed limits b. great flexibility in how and where to make pollution reductions c. proven success in reducing levels of pollution d. all of the above 6. With regard to international environmental issues, the Openstax text argues that: a. high income countries should use their superior economic position to force low income countries to reduce pollution b. climate change is too important of an issue to leave it to a market-oriented approach for a solution c. the practical details of an international solution are forbiddingly complex d. all of the above 7. According to the Openstax text: a. Increased environmental protection reduces economic output b. Environmental protection measures usually enhance economic output c. Increased environmental protection only reduces economic output in poorer countries d. Environmental protection measures only…