MITBch20

MITBch20 - CHAPTER 20 1EXTERNALITIES, THE ENVIRONMENT, AND...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
C HAPTER 20 1E XTERNALITIES , THE E NVIRONMENT , AND N ATURAL R ESOURCES TRUE-FALSE QUESTIONS PART 1: THE ECONOMICS OF ENVIRONMENTAL PROTECTION EXTERNALITIES: A CRITICAL SHORTCOMING OF THE MARKET MECHANISM 1. Increasing GDP generally causes increases in problems of waste disposal. ANSWER: T, M, R 2. Increasing environmental awareness in the United States has occurred with increasing GDP, which  has reduced concerns about basic needs. ANSWER: T, E, R 3. In the last three decades, air quality in American cities has improved. ANSWER: T, M, R 4. Environmental problems occur exclusively in capitalist economies. ANSWER: F, E, R 5. Pollution is a relatively new phenomenon. ANSWER: F, E, R 6. Inputs used in production must ultimately become a waste product. ANSWER: T, M, A 7. If not recycled, an input used in production ultimately winds up as a waste product. ANSWER: T, M, A 8. Individuals and government have been contributors in harming the environment. ANSWER: T, M, R 9. Environmental destruction is peculiar to centrally planned economies. ANSWER: F, E, R 10. The “edifice complex” is based on the idea that bigger is better. ANSWER: T, E, R 11. Centrally planned economies like China produce relatively little pollution. ANSWER: F, M, R 75
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
76 Chapter 20/Externalities, the Environment, and Natural Resources 12. Economists believe it is feasible and desirable to reduce environmental damage to zero. ANSWER: F, M, I 13. Recycling rates for aluminum, paper, and glass have been increasing in the United States. ANSWER: T, E, R 14. The pricing system has a failure built into it when externalities exist. ANSWER: T, M, R 15. Pollution is an example of a negative externality. ANSWER: T, M, A 16. The opportunity cost of a completely clean environment is not worth the price for most people. ANSWER: T, D, A 17. Economists believe that the goal of environmental policy should be zero pollution. ANSWER: F, D, A 18. Externalities are benefits or damages conferred upon people who are directly involved in  an  exchange of a good or service. ANSWER: F, E, R 19. Externalities can create a threat to environmental quality. ANSWER: T, E, R SUPPLY-DEMAND ANALYSIS OF ENVIRONMENTAL EXTERNALITIES 20 . The production of smoke as a pollutant is a failure of the market system. ANSWER: T, M, A 21. Basic supply and demand analysis can be used to explain how externalities lead to environmental  problems. ANSWER: T, E, R
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/26/2011 for the course ECON 160 taught by Professor Baim during the Spring '98 term at UCLA.

Page1 / 31

MITBch20 - CHAPTER 20 1EXTERNALITIES, THE ENVIRONMENT, AND...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online