Environmental economics

Which statement about the relationship between economics and the environment is true?

• Internal and external environmental costs are usually considered equally.
• Long-term effects often receive more weight than short-term effects.
• Harm to the environment can harm economies.
• The relationship usually receives serious consideration.

A power company is given free land by the government to reduce the cost of providing wind-generated electricity to rural residents. This is an example of a

• command and control approach
• cap and trade system
• subsidy
• green tax

Sometimes, a company that generates pollution will pay extra taxes, based on the amount of pollution it produces. These are known as

• green taxes
• command and control taxes
• subsidy taxes
• cap and trade taxes

What needs to be done first before proposing a solution to an environmental problem?

• Help a solution become a law.
• Gain access to policymakers.
• Get organized to take action.
• Identify the specific causes of the problem.

Ultimately, where do economies get their resources and put their wastes?

• factories
• cities
• households
• ecosystems

All economies depend on the environment. 

• True
• False

Which of the following pollution control policy instruments are marked based?

• Pollution taxes and tradable pollution permits

• Technology-based regulations and emission standards

• Pollution taxes and emission standards

• Emission standards and tradable pollution permits

Which of the following pollution levels is the optimal level of pollution according to economists?

• Pollution according to the equimarginal principle

• Unregulated market outcome

• When the marginal damage of pollution is smaller than the marginal benefits

• Zero pollution

What is the main advantage of a system of tradable permits relative to a carbon tax?

• The level of total emissions is known with certainty.

• It is easier to understand.

• It results in a lower level of price increases to consumers.

• The price of permits is known with certainty.

• It encourages technological innovation.

Which economic characteristic of climate change is not correct?

• The private costs of greenhouse gas emissions generally exceed the societal costs of these emissions

• Greenhouse gas emissions have intergenerational welfare consequences

• Greenhouse gas emissions affect a public good which is the atmosphere

• Climate change is a global externality in terms of both causes and effects