Question 1

Which of the following would occur if the marginal cost of extracting oil rose?

Accepted Answer

A)   People would use less oil.
B)   People would use more oil.
C)   Oil producers would increase their production of oil.
D)   Oil company profits would rise.E) B) and D)
F) B) and C)

Question 2

Suppose the production of widgets generates negative externalities but no positive externalities.If widget producers suddenly had to pay the true marginal cost of their product for every unit they produced,including all externalities,producers would

Accepted Answer

A)   produce more than the current level of output.
B)   produce and sell at a lower price than before.
C)   produce less than the current level of output.
D)   have less of an incentive to control their pollution output.E) C) and D)
F) None of the above

Question 3

Describe the difference between a command-and-control approach and a market-based approach to reducing pollution.

Accepted Answer

Command-and-control regulation usually f...

Question 4

If the government sells certificates giving the owner permission to emit a particular amount of pollution,and then allows these certificates to be bought and sold at a market price,then the government is using a market-based approach to pollution reduction called

Accepted Answer

A)   tradable pollution permits.
B)   command-and-control regulation.
C)   a carbon tax.
D)   mitigation.E) None of the above
F) A) and C)

Question 5

The cost of getting one more ton of coal or one more barrel of oil out of the ground is called the

Accepted Answer

A)   marginal cost of capital.
B)   energy renewal rate.
C)   marginal cost of extraction.
D)   energy mitigation rate.E) None of the above
F) A) and B)

Question 6

If the true social marginal cost of producing a product,including the externality,is higher than the marginal cost to the producer alone,then which of the following must be true?

Accepted Answer

A)   The production of the product generates a positive externality.
B)   The production of the product is too small compared to the ideal amount.
C)   The price of the product is too high compared to what would be socially ideal.
D)   The production of the product generates a negative externality.E) None of the above
F) A) and B)

Question 7

Which of the following is a type of command-and-control regulation?

Accepted Answer

A)   A law setting the maximum allowable amount of sulfur dioxide (SO2)  in a certain district, and auctioning off permits totaling the allowable tons of SO2.
B)   A law requiring coke ovens to be built in a certain way so as to restrict the amount of pollution they emit.
C)   A law taxing users of fuels according to the carbon content in the fuel.
D)   A law requiring consumers of electronics to pay a tax according to the amount of toxic heavy metals in each item purchased.E) A) and D)
F) All of the above

Question 8

Suppose air pollution creates a haze that obscures a previously clear view of a distant mountain range.This effect of pollution would be called

Accepted Answer

A)   a health impact.
B)   material and crop damage.
C)   harm to environmental amenities.
D)   ecological damage.E) A) and B)
F) None of the above

Question 9

Adjusting GDP downward for the impact industry has on the environment results in a number that is greatly disputed,but is often referred to as

Accepted Answer

A)   "eco-output."
B)   "environment-neutral GDP."
C)   "resource-adjusted GDP."
D)   "green GDP."E) None of the above
F) C) and D)

Question 10

Which of the following companies would benefit the most from a carbon tax?

Accepted Answer

A)   An oil company.
B)   A coal mining equipment manufacturer.
C)   A producer of windmill turbines.
D)   A trucking company.E) B) and D)
F) B) and C)

Question 11

To estimate the value of a statistical life,economists sometimes ask people how much they would be willing to pay to reduce their risk of death by a small amount.This method of determining the value of a statistical life is known as

Accepted Answer

A)   revealed preference.
B)   stated preference.
C)   the actuarial method.
D)   the survey method.E) None of the above
F) A) and C)

Question 12

The "cap" in cap-and-trade refers to the

Accepted Answer

A)   cap on pollution implied by the limited number of permits issued.
B)   captain who oversees the reduction of pollution by businesses.
C)   maximum number of pollution permits that any one business may use.
D)   name of a specific piece of equipment that is used to reduce air pollution.E) B) and C)
F) A) and B)

Question 13

Negative externalities resulting from a coal-fired power plant would include

Accepted Answer

A)   emissions of sulfur dioxide, a chemical that causes acid rain.
B)   creation of lower-cost electricity, which makes it more difficult for high-cost electricity producers like solar or wind power generators to make a profit.
C)   Profits to people other than the consumers of the electricity, such as stockholders in the electric utility company.
D)   illumination of cities, reducing crime rates and accidents from better lighting of streets and other public places.E) B) and C)
F) A) and B)

Question 14

Which of these attempts at promoting energy conservation would shift the demand curve for energy to the left?

Accepted Answer

A)   A higher tax on gasoline.
B)   A tougher fuel efficiency standard for cars.
C)   A reduction in the amount of available oil.
D)   A higher average speed limit.E) None of the above
F) B) and C)

Question 15

A tax on different kinds of fuels based on their carbon content is called a

Accepted Answer

A)   mitigation tax.
B)   BTU tax.
C)   carbon tax.
D)   fossil fuel tax.E) B) and D)
F) A) and B)

Question 16

Which of the following would shift the demand for gasoline to the left?

Accepted Answer

A)   An excise tax levied on sellers of gasoline.
B)   New regulatory restrictions on the construction of new oil refineries.
C)   A national speed limit maximum set below existing state speed limits.
D)   An increase in the marginal cost of extracting oil from large reserves in the Middle East.E) All of the above
F) None of the above

Question 17

In 2010,Exxon Mobil,the world's largest oil company,spent $32 billion on

Accepted Answer

A)   payments to people affected by oil spills.
B)   defending itself against class-action lawsuits.
C)   exploration and capital investment.
D)   executive compensation.E) A) and C)
F) A) and B)

Question 18

List and briefly describe the four types of negative impacts from pollution.

Accepted Answer

Health impacts are the loss of life and ...

Question 19

Suppose the government auctions off permits to car and truck owners,with each permit allowing the user to emit five tons of carbon dioxide each year from her or his vehicle.The total amount of carbon dioxide permitted is less than the amount currently emitted by vehicles.These permits could then be bought and sold on a market.Which of the following would occur?

Accepted Answer

A)   Wealthy people would bear a larger burden under this system, relative to their incomes.
B)   The total amount of fossil fuels burned in vehicles would actually increase.
C)   People would pay less attention to their vehicle emissions than they do now because they could simply buy a permit and emit more.
D)   People would tend to purchase cars that emitted less carbon dioxide.E) A) and D)
F) B) and D)

Question 20

Which of the following will occur if the supply curve for gasoline shifts to the left?

Accepted Answer

A)   The demand for gasoline will shift to the left as people demand less gasoline.
B)   The price of gasoline will rise, and the quantity demanded will fall.
C)   The price of gasoline will fall, and the quantity demanded will rise.
D)   Nothing will happen to the quantity of gasoline used because people are addicted to gasoline.E) B) and C)
F) None of the above

Exam 19: Economics of Energy, the Environment, and Global Climate Change Glossary

Adjusting GDP downward for the impact industry has on the environment results in a number that is greatly disputed,but is often referred to as

Correct Answer
verified

To estimate the value of a statistical life,economists sometimes ask people how much they would be willing to pay to reduce their risk of death by a small amount.This method of determining the value of a statistical life is known as

Correct Answer
verified

Suppose air pollution creates a haze that obscures a previously clear view of a distant mountain range.This effect of pollution would be called

Correct Answer
verified

Suppose the production of widgets generates negative externalities but no positive externalities.If widget producers suddenly had to pay the true marginal cost of their product for every unit they produced,including all externalities,producers would

Correct Answer
verified

A tax on different kinds of fuels based on their carbon content is called a

Correct Answer
verified

If the government sells certificates giving the owner permission to emit a particular amount of pollution,and then allows these certificates to be bought and sold at a market price,then the government is using a market-based approach to pollution reduction called

Correct Answer
verified

The "cap" in cap-and-trade refers to the

Correct Answer
verified

Describe the difference between a command-and-control approach and a market-based approach to reducing pollution.

Correct Answer
verified
Command-and-control regulation usually f...
View Answer

Which of the following will occur if the supply curve for gasoline shifts to the left?

Correct Answer
verified

Correct Answer
verified

In 2010,Exxon Mobil,the world's largest oil company,spent $32 billion on

Correct Answer
verified

List and briefly describe the four types of negative impacts from pollution.

Correct Answer
verified
Health impacts are the loss of life and ...
View Answer

Which of the following would occur if the marginal cost of extracting oil rose?

Correct Answer
verified

Which of these attempts at promoting energy conservation would shift the demand curve for energy to the left?

Correct Answer
verified

Negative externalities resulting from a coal-fired power plant would include

Correct Answer
verified

Which of the following companies would benefit the most from a carbon tax?

Correct Answer
verified

Which of the following is a type of command-and-control regulation?

Correct Answer
verified

Which of the following would shift the demand for gasoline to the left?

Correct Answer
verified

The cost of getting one more ton of coal or one more barrel of oil out of the ground is called the

Correct Answer
verified

If the true social marginal cost of producing a product,including the externality,is higher than the marginal cost to the producer alone,then which of the following must be true?

Correct Answer
verified

Exam 19: Economics of Energy, the Environment, and Global Climate Change Glossary

Adjusting GDP downward for the impact industry has on the environment results in a number that is greatly disputed,but is often referred to as

Correct AnswerverifiedShow Answer

To estimate the value of a statistical life,economists sometimes ask people how much they would be willing to pay to reduce their risk of death by a small amount.This method of determining the value of a statistical life is known as

Correct AnswerverifiedShow Answer

Suppose air pollution creates a haze that obscures a previously clear view of a distant mountain range.This effect of pollution would be called

Correct AnswerverifiedShow Answer

Suppose the production of widgets generates negative externalities but no positive externalities.If widget producers suddenly had to pay the true marginal cost of their product for every unit they produced,including all externalities,producers would

Correct AnswerverifiedShow Answer

A tax on different kinds of fuels based on their carbon content is called a

Correct AnswerverifiedShow Answer

If the government sells certificates giving the owner permission to emit a particular amount of pollution,and then allows these certificates to be bought and sold at a market price,then the government is using a market-based approach to pollution reduction called

Correct AnswerverifiedShow Answer

The "cap" in cap-and-trade refers to the

Correct AnswerverifiedShow Answer

Describe the difference between a command-and-control approach and a market-based approach to reducing pollution.

Correct AnswerverifiedCommand-and-control regulation usually f...View AnswerShow Answer

Which of the following will occur if the supply curve for gasoline shifts to the left?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In 2010,Exxon Mobil,the world's largest oil company,spent $32 billion on

Correct AnswerverifiedShow Answer

List and briefly describe the four types of negative impacts from pollution.

Correct AnswerverifiedHealth impacts are the loss of life and ...View AnswerShow Answer

Which of the following would occur if the marginal cost of extracting oil rose?

Correct AnswerverifiedShow Answer

Which of these attempts at promoting energy conservation would shift the demand curve for energy to the left?

Correct AnswerverifiedShow Answer

Negative externalities resulting from a coal-fired power plant would include

Correct AnswerverifiedShow Answer

Which of the following companies would benefit the most from a carbon tax?

Correct AnswerverifiedShow Answer

Which of the following is a type of command-and-control regulation?

Correct AnswerverifiedShow Answer

Which of the following would shift the demand for gasoline to the left?

Correct AnswerverifiedShow Answer

The cost of getting one more ton of coal or one more barrel of oil out of the ground is called the

Correct AnswerverifiedShow Answer

If the true social marginal cost of producing a product,including the externality,is higher than the marginal cost to the producer alone,then which of the following must be true?

Correct AnswerverifiedShow Answer

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Command-and-control regulation usually f...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Health impacts are the loss of life and ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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