Environmental Economics 4th Canadian Edition By Field - Test Bank Instant Download - Complete Test Bank With Answers Sample Questions Are Posted Below c5 Student: ___________________________________________________________________________ 1. Determining a target level of environmental quality is an example of _______. A. positive policy analysis B. positive economics C. normative policy …
$19.99
Environmental Economics 4th Canadian Edition By Field – Test Bank
Instant Download – Complete Test Bank With Answers
Sample Questions Are Posted Below
c5
Student: ___________________________________________________________________________
| 1. | Determining a target level of environmental quality is an example of _______.
|
| 2. | For certain pollutants with a(n) _______, emissions or ambient quality up to a certain level cause _________ damages.
|
| 3. | A marginal damage function that becomes vertical at high levels of emissions represents _______.
|
| 4. | A(n) ________ shows how damages are related to the concentration of a waste product contained in the ambient environment.
|
| 5. | For a marginal damage cost function equal to: MD = 0.8E, the marginal damage cost of the 50th unit of emissions is _______.
|
| 6. | In the following figure, the marginal damage cost of the 25th unit of emissions is equal to _______.
|
| 7. | In the following figure, the total damage cost of 25 units of emissions is equal to _______.
|
| 8. | In the following figure, the uncontrolled level of emissions is _______.
|
| 9. | In the following figure, the marginal abatement cost of abating the 20th unit of emissions is _______.
|
| 10. | In the following figure, the total abatement cost of abating 20 units of emissions is _______.
|
| 11. | Suppose there are three polluting sources with MAC1 = 100 – 4E, MAC2 = 80 – 2E and MAC3 = 60 – 0.5E. When MAC equals $10, the aggregate level of abatement for these sources would be _______.
|
| 12. | Suppose there are three polluting sources with MAC1 = 75 – 0.25E, MAC2 = 120 – 4E and MAC3 = 50 – 0.5E. When MAC equals $20, the aggregate level of abatement for these sources would be _______.
|
| 13. | For a firm with more than one source of output with differing cost structures, its ________ will be minimized when its ________ are equalized across sources.
|
| 14. | For a firm with more than one source of emissions, the ________ states that the total costs of abating a given abatement target will be minimized when the marginal costs of abatement are ________ across sources.
|
| 15. | Under what circumstances would a firm with more than one source of emissions minimize its total costs of abatement by setting abatement levels equal at each source?
|
| 16. | Under what circumstances would a firm with more than one source of production minimize its total costs of production by setting production levels equal at each source?
|
| 17. | The study of what ought to be such as determining the socially efficient level of emissions is known as normative economics.
True False |
| 18. | Describing and explaining economic events that have taken place in the real world is known as positive economics.
True False |
| 19. | For a single, non-accumulative pollutant, when no threshold exists the marginal damage function begins at the origin.
True False |
| 20. | The height of the marginal damage curve at a particular level of emissions shows how much total damages change if there is a small change in the quantity of emissions.
True False |
| 21. | The least costly way of achieving reductions in emissions for a group of polluting sources is depicted by the aggregate marginal abatement cost function of the group of sources.
True False |
| 22. | The equimarginal principle can only be applied at the level of one firm with multiple plants all producing the same good and pollutant.
True False |
| 23. | Briefly define positive and normative economics and give an example of each concept.
|
| 24. | Draw a diagram of the marginal abatement cost curve described by: MAC = 100 – 2E. What is the uncontrolled level of emissions? What is the marginal abatement cost of the 40th unit of abatement? What is the total abatement cost of 40 units of abatement?
|
| 25. | Draw a diagram of the marginal abatement cost curve described by: MAC = 90 – 3E. What is the uncontrolled level of emissions? What is the marginal abatement cost of the 10th unit of abatement? What is the total abatement cost of 10 units of abatement?
|
| 26. | Let MAC1 = 80 – 2E and MAC2 = 50 – E. Graph each function and graphically derive the aggregate MAC curve.
|
| The following diagram presents the marginal damage cost (MDC) and marginal abatement cost (MAC) curves for a particular industry. |
| 27. | What is the socially efficient level of emissions for this industry?
|
| 28. | What is the socially efficient level of abatement for this industry?
|
| 29. | What is the total damage cost at the socially efficient level of emissions for this industry?
|
| 30. | What is the total abatement cost at the socially efficient level of emissions?
|
| 31. | What is the total social cost at the socially efficient level of emissions?
|
c5 Key
| 1. | Determining a target level of environmental quality is an example of _______.
|
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #1 Learning Objective: 05-01 Distinguish between positive and normative economics. |
| 2. | For certain pollutants with a(n) _______, emissions or ambient quality up to a certain level cause _________ damages.
|
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #2 Learning Objective: 05-02 Define the marginal damage function and distinguish among four different shapes and what each means. |
| 3. | A marginal damage function that becomes vertical at high levels of emissions represents _______.
|
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #3 Learning Objective: 05-02 Define the marginal damage function and distinguish among four different shapes and what each means. |
| 4. | A(n) ________ shows how damages are related to the concentration of a waste product contained in the ambient environment.
|
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #4 Learning Objective: 05-02 Define the marginal damage function and distinguish among four different shapes and what each means. |
| 5. | For a marginal damage cost function equal to: MD = 0.8E, the marginal damage cost of the 50th unit of emissions is _______.
|
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #5 Learning Objective: 05-03 Distinguish between marginal and total damages and illustrate their derivation graphically. |
| 6. | In the following figure, the marginal damage cost of the 25th unit of emissions is equal to _______.
|
| Difficulty: Easy Field – Chapter 05 #6 Learning Objective: 05-03 Distinguish between marginal and total damages and illustrate their derivation graphically. |
| 7. | In the following figure, the total damage cost of 25 units of emissions is equal to _______.
|
| Difficulty: Easy Field – Chapter 05 #7 Learning Objective: 05-03 Distinguish between marginal and total damages and illustrate their derivation graphically. |
| 8. | In the following figure, the uncontrolled level of emissions is _______.
|
| Difficulty: Easy Field – Chapter 05 #8 Learning Objective: 05-04 Interpret the meaning of the marginal abatement cost curve and illustrate graphically the distinction between marginal and total costs of abatement. |
| 9. | In the following figure, the marginal abatement cost of abating the 20th unit of emissions is _______.
|
| Difficulty: Easy Field – Chapter 05 #9 Learning Objective: 05-04 Interpret the meaning of the marginal abatement cost curve and illustrate graphically the distinction between marginal and total costs of abatement. |
| 10. | In the following figure, the total abatement cost of abating 20 units of emissions is _______.
|
| Difficulty: Easy Field – Chapter 05 #10 Learning Objective: 05-04 Interpret the meaning of the marginal abatement cost curve and illustrate graphically the distinction between marginal and total costs of abatement. |
| 11. | Suppose there are three polluting sources with MAC1 = 100 – 4E, MAC2 = 80 – 2E and MAC3 = 60 – 0.5E. When MAC equals $10, the aggregate level of abatement for these sources would be _______.
|
| Accessibility: Keyboard Navigation Difficulty: Moderate Field – Chapter 05 #11 Learning Objective: 05-05 Show graphically how to aggregate marginal abatement cost curves. |
| 12. | Suppose there are three polluting sources with MAC1 = 75 – 0.25E, MAC2 = 120 – 4E and MAC3 = 50 – 0.5E. When MAC equals $20, the aggregate level of abatement for these sources would be _______.
|
| Accessibility: Keyboard Navigation Difficulty: Moderate Field – Chapter 05 #12 Learning Objective: 05-05 Show graphically how to aggregate marginal abatement cost curves. |
| 13. | For a firm with more than one source of output with differing cost structures, its ________ will be minimized when its ________ are equalized across sources.
|
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #13 Learning Objective: 05-06 Explain the equimarginal principle and how it applies to marginal abatement costs. |
| 14. | For a firm with more than one source of emissions, the ________ states that the total costs of abating a given abatement target will be minimized when the marginal costs of abatement are ________ across sources.
|
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #14 Learning Objective: 05-06 Explain the equimarginal principle and how it applies to marginal abatement costs. |
| 15. | Under what circumstances would a firm with more than one source of emissions minimize its total costs of abatement by setting abatement levels equal at each source?
|
| Accessibility: Keyboard Navigation Difficulty: Moderate Field – Chapter 05 #15 Learning Objective: 05-06 Explain the equimarginal principle and how it applies to marginal abatement costs. |
| 16. | Under what circumstances would a firm with more than one source of production minimize its total costs of production by setting production levels equal at each source?
|
| Accessibility: Keyboard Navigation Difficulty: Moderate Field – Chapter 05 #16 Learning Objective: 05-06 Explain the equimarginal principle and how it applies to marginal abatement costs. |
| 17. | The study of what ought to be such as determining the socially efficient level of emissions is known as normative economics.
TRUE |
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #17 Learning Objective: 05-01 Distinguish between positive and normative economics. |
| 18. | Describing and explaining economic events that have taken place in the real world is known as positive economics.
TRUE |
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #18 Learning Objective: 05-01 Distinguish between positive and normative economics. |
| 19. | For a single, non-accumulative pollutant, when no threshold exists the marginal damage function begins at the origin.
TRUE When no threshold exists, the very first unit of emissions has an impact on the environment. |
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #19 Learning Objective: 05-02 Define the marginal damage function and distinguish among four different shapes and what each means. |
| 20. | The height of the marginal damage curve at a particular level of emissions shows how much total damages change if there is a small change in the quantity of emissions.
TRUE |
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #20 Learning Objective: 05-03 Distinguish between marginal and total damages and illustrate their derivation graphically. |
| 21. | The least costly way of achieving reductions in emissions for a group of polluting sources is depicted by the aggregate marginal abatement cost function of the group of sources.
TRUE |
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #21 Learning Objective: 05-05 Show graphically how to aggregate marginal abatement cost curves. |
| 22. | The equimarginal principle can only be applied at the level of one firm with multiple plants all producing the same good and pollutant.
FALSE |
| Accessibility: Keyboard Navigation Difficulty: Easy Field – Chapter 05 #22 Learning Objective: 05-06 Explain the equimarginal principle and how it applies to marginal abatement costs. |
| 23. | Briefly define positive and normative economics and give an example of each concept.
Positive economics studies “what is” by describing or explaining events that actually occur in the real world. An example of positive economics is the analysis of market data on actual prices and sales volumes of a particular good (many other examples are possible here). Normative economics studies “what ought to be” such as what the outcome of the economy or public policy ought to be in order to satisfy a certain goal (eg., fairness, social efficiency, etc.). An example of normative economics is designing an environmental policy that treats people of different income levels fairly (again numerous other examples are possible). |
| Difficulty: Easy Field – Chapter 05 #23 Learning Objective: 05-01 Distinguish between positive and normative economics. |
| 24. | Draw a diagram of the marginal abatement cost curve described by: MAC = 100 – 2E. What is the uncontrolled level of emissions? What is the marginal abatement cost of the 40th unit of abatement? What is the total abatement cost of 40 units of abatement?
The diagram below shows the function described by: MAC = 100 – 2E. To find the level of uncontrolled emissions, set MAC = 0 and solve for E: |
| Difficulty: Moderate Field – Chapter 05 #24 Learning Objective: 05-04 Interpret the meaning of the marginal abatement cost curve and illustrate graphically the distinction between marginal and total costs of abatement. |
| 25. | Draw a diagram of the marginal abatement cost curve described by: MAC = 90 – 3E. What is the uncontrolled level of emissions? What is the marginal abatement cost of the 10th unit of abatement? What is the total abatement cost of 10 units of abatement?
The diagram below shows the function described by: MAC = 90 – 3E. To find the level of uncontrolled emissions, set MAC = 0 and solve for E: |
| Difficulty: Moderate Field – Chapter 05 #25 Learning Objective: 05-04 Interpret the meaning of the marginal abatement cost curve and illustrate graphically the distinction between marginal and total costs of abatement. |
| 26. | Let MAC1 = 80 – 2E and MAC2 = 50 – E. Graph each function and graphically derive the aggregate MAC curve.
The following table summarizes the abatement that will take place at each MAC level and the total for each MAC level. The first panel shows the individual sources’ MAC curves. Source 1’s MAC is represented by the blue line and Source 2’s MAC is represented by the red line. The second panel shows the aggregate MAC curve (the green line). Note the kink at MAC = $50. |
| Difficulty: Moderate Field – Chapter 05 #26 Learning Objective: 05-05 Show graphically how to aggregate marginal abatement cost curves. |
| The following diagram presents the marginal damage cost (MDC) and marginal abatement cost (MAC) curves for a particular industry. |
| Field – Chapter 05 |
| 27. | What is the socially efficient level of emissions for this industry?
The socially efficient level of emissions can be found where the marginal damage cost equals the marginal abatement cost. Set the two equations equal to solve for E*: 200 + E = 900 – 0.75E |
| Difficulty: Easy Field – Chapter 05 #27 Learning Objective: 05-07 Illustrate graphically the determination of a socially efficient level of pollution and how this equilibrium minimizes net social costs compared to no emission control. |
| 28. | What is the socially efficient level of abatement for this industry?
The socially efficient level of abatement is found by subtracting the socially efficient level of emissions from the level of uncontrolled emissions. Uncontrolled emissions can be found where MAC = 0: 0 = 900 – 0.75E |
| Difficulty: Moderate Field – Chapter 05 #28 Learning Objective: 05-07 Illustrate graphically the determination of a socially efficient level of pollution and how this equilibrium minimizes net social costs compared to no emission control. |
| 29. | What is the total damage cost at the socially efficient level of emissions for this industry?
The total damage cost when emissions equals 400 units is the area under the marginal damage cost curve. When E = 400, MDC = 200 + E = 600. The area under the MDC curve will be the area of a rectangle with height of 200 and width of 400 and a triangle with height of 400 and a width of 400 yielding: TDC = 200 × 400 + ½ (400 × 400) = 80,000 + 80,000 = $160,000. |
| Difficulty: Moderate Field – Chapter 05 #29 Learning Objective: 05-07 Illustrate graphically the determination of a socially efficient level of pollution and how this equilibrium minimizes net social costs compared to no emission control. |
| 30. | What is the total abatement cost at the socially efficient level of emissions?
The total abatement cost at the socially efficient level of emissions is equal to the area under the marginal abatement cost curve from emissions of 400 to emissions of 1,200 (this distance represents the abatement of 800 units). When emissions are 400, MAC = 900 – 0.75(400) = 600. Total abatement cost is going to be the area of a triangle with height of 600 and base of 800: TAC = ½ (800 × 600) = $240,000 |
| Difficulty: Easy Field – Chapter 05 #30 Learning Objective: 05-07 Illustrate graphically the determination of a socially efficient level of pollution and how this equilibrium minimizes net social costs compared to no emission control. |
| 31. | What is the total social cost at the socially efficient level of emissions?
The total social cost at the socially efficient level of emissions is equal to the sum of the TDC and the TAC: TSC = 160,000 + 240,000 = $400,000 |
| Difficulty: Easy Field – Chapter 05 #31 Learning Objective: 05-07 Illustrate graphically the determination of a socially efficient level of pollution and how this equilibrium minimizes net social costs compared to no emission control. |
c5 Summary
| Category | # of Questions |
| Accessibility: Keyboard Navigation | 17 |
| Difficulty: Easy | 22 |
| Difficulty: Moderate | 9 |
| Field – Chapter 05 | 32 |
| Learning Objective: 05-01 Distinguish between positive and normative economics. | 4 |
| Learning Objective: 05-02 Define the marginal damage function and distinguish among four different shapes and what each means. | 4 |
| Learning Objective: 05-03 Distinguish between marginal and total damages and illustrate their derivation graphically. | 4 |
| Learning Objective: 05-04 Interpret the meaning of the marginal abatement cost curve and illustrate graphically the distinction between marginal and total costs of abatement. | 5 |
| Learning Objective: 05-05 Show graphically how to aggregate marginal abatement cost curves. | 4 |
| Learning Objective: 05-06 Explain the equimarginal principle and how it applies to marginal abatement costs. | 5 |
| Learning Objective: 05-07 Illustrate graphically the determination of a socially efficient level of pollution and how this equilibrium minimizes net social costs compared to no emission control. | 5 |
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
Original price was: $30.00.$20.00Current price is: $20.00.
