4 out of 4 points If all benefits from consuming a good go to consumers, the demand curve is the same as the Answer Selected Answer: MPB curve Correct Answer: MPB curve Question 2 4 out of 4 points Costs incurred by the producer to buy or hire resources are called Answer Selected Answer: Explicit costs Correct Answer: Explicit costs Question 3 0 out of 4 points
If a pollution tax is placed on a firm emitting pollution, the firm will treat pollution, rather than pay the tax, as long as the tax is Answer Selected Answer: Correct Answer: Above its MPC of pollution control Question 4 4 out of 4 points The level of pollution increases when Answer Selected Answer: Correct Answer: Wastes are dumped into the environment at a higher rate than wastes are recycled Question 5
4 out of 4 points As additional units of pollution control are added, at some point each additional unit adds Answer Selected Answer: Correct Answer: Less than the previous unit to total benefits Question 6 0 out of 4 points Which of the following approaches would an economist propose to address industrial pollution of a river? Answer Selected Answer: Correct Answer: Charge each polluter a fixed amount for each unit of pollutant dumped into the river
Question 7 4 out of 4 points When pollution is not regulated in the market, polluting firms will Answer Selected Answer: Correct Answer: Over-utilize resources and charge low prices Question 8 0 out of 4 points Complete elimination of pollution is economically rational when Answer Selected Answer: Correct Answer: For each unit of pollution, the cost of clean-up is less than the benefit from its elimination Question 9
You've reached the end of your free preview.
Want to read all 17 pages?
- Summer '13
- Economics, producer, Externality