In the following figure, the marginal willingness to pay for the 10th unit of the good is _.
In the following figure, the total willingness to pay for the 10th unit of the good is _.
Suppose for a given market that the MWTP = 300 - 0.5QD and MC = 50 + 2QS. Assuming all market
and non-market values are incorporated into these equations, the MWTP at the socially efficient level of
output is equal to _.
A. 100 uni
A(n) _ in the economic world is something that leads people to channel their production and
consumption efforts in a specific direction.
A. moral obligation
B. economic incentive
C. property right
D. ethical motive
Mineral stocks, fisheries and water are all examples of _.
A. renewable resources
B. non-renewable resources
C. natural resource capital
D. environmental capital
The stock of natural and environmental resources that sustain ecos
When people can negotiate with each other to come up with mutually satisfactory ways to deal with
environmental externalities with little or no involvement of the government this is referred to as
A. moral suasion
B. an incenti
When there is uncertainty about the marginal abatement cost curve andthe marginal damage cost curve is
_, a tax equal to the _ is the socially efficient policy.
A. horizontal; socially efficient level of emissions
B. horizontal; m
_ is an example of an episodic emission.
A. Agricultural runoff of pesticides
B. Emissions of sulphur dioxide from a coal burning electrical plant
C. An oil spill such as the Exxon Valdez
D. The effluent released from a sewage tre
The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the
A. socially efficient level of abatement
B. socially efficient level of emissions
C. level of emissions that maximizes total a
Employing a global CO2 price to contain mean projected warming to a specific target at least cost is an
example of _.
A. a fiscal dividend
B. a climate stabilization goal
C. a cap and trade system
D. an emission trading system
Illegal roadside dumping resulting from the introduction of waste disposal charges is one example of the
_ of an environmental policy.
A. pollution control cost
B. enforcement cost
C. unintended consequences
D. before/after result
_ content standards require that all materials-using products manufactured or sold contain some
specified percentage of _.
A. Maximum; recycled material
B. Minimum; recycled material
C. Maximum; virgin material
D. Minimum; virgin
Which of the following is NOT a power granted by the Constitution to the federal government?
A. powers over ocean and inland fisheries
B. power to enact legislation in the interests of Peace, Order and Good Government
C. power ove
Under the _, _ is to design the program for managing air quality in Canada, and then
turn the monitoring, enforcement, and reporting operations of the program over to the provinces and
A. National Ambient Air Quality
A polluter with MAC = 400 - 4E will emit _ when faced with an emissions tax of $70 per unit of
A. 17.5 units
B. 82.5 units
C. 117.5 units
D. 120 units
A polluter with MAC = 600 - 5E will emit _ when faced with an emi
If the marginal abatement cost of a policy is represented by: MAC = 1,400 - 5E, the total abatement cost
when the target level of emissions is 200 units equals _.
Moral objections to the
Suppose there are two firms in an industry with marginal abatement cost curves:
MACA = 400 - 2EA
MACB = 900 - 3EB
If the government regulator has chosen a target level of total emissions to be 400 units per year,
_ permits will ne
Changes in productivity, health-care costs, loss of human capital and replacement/restoration of damaged
property or businesses are all examples of _.
A. indirect approaches of cost estimation
B. indirect approaches of benefit esti
Because the burden of proof is on _, CEPA regulations tend to be _ in nature.
A. firms to prove a substance is not toxic; proactive
B. firms to prove a substance is not toxic; reactive
C. the government to prove a substance is tox
Benefit-cost analysis incorporates _ valuation of all inputs and outputs related to the project
whether or not they are transacted in private markets.
If the MAC = 400 - 2E and MDC =
Determining a target level of environmental quality is an example of _.
A. positive policy analysis
B. positive economics
C. normative policy analysis
D. benefit-cost analysis
For certain pollutants with a(n) _, emissions or amb
Environmental Policy Analysis
Criteria for Evaluating Environmental Policies
The following criteria are used in evaluating the effectiveness and
appropriateness of a given environmental policy for controlling
Chapters 3, 4 & 5
Basic Microeconomic Foundations of
Demand, Willingness to Pay and Benefit
The demand curve for a good shows the quantity purchased at
every price (this is called reading the demand curve
horizontally). Since the
Chapters 6, 7 & 8
Purpose of Cost-Benefit Analysis
Cost-benefit analysis is a tool for aiding public policy decisions:
The decision to control hazardous pollutants in drinking water.
The decision to protect an endangered species.
Dealing with global warming by cutting emissions of greenhouse gases
will cost the world a lot of money
trillions of dollars
but doing nothing about it will cost the world an awful lot more
Chapters 1 & 2