QUESTION 3Greenhouse gases areuniformly mixed pollutantsO stock pollutantsOgasses the environment cannot absorb at allO concentrated pollutantsnonuniformly mixed pollutantsQUESTION 4Weak sustainability requires the maintenance ofspecific components of natural capitalnatural capitalthe total capital stockO physical capitalO human capitalQUESTION 5

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QUESTION 3 Greenhouse gases are O uniformly mixed pollutants O stock pollutants O gasses the environment cannot absorb at all O concentrated pollutants nonuniformly mixed pollutants

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. Understanding different policy options to correct for negativeexternalities Carbon dioxide emissions have been linked to melting of sea ice. The following table lists some potential regulations targeting the amount of airborne carbon dioxide. For each policy listed, identify whether it is a command-and-control policy (regulation), tradable permit system, corrective subsidy, or corrective tax. Tradable Permit System Public Policy The government limits total carbon-dioxide emissions by all factories to 260,000 tons per five years. Each individual factory is given the right to emit 230 tons of carbon dioxide, and factories may buy and sell these rights in a marketplace. Trees take carbon dioxide out of the air and convert it to oxygen, so the government funds a tree-planting initiative by offering $440 to any citizen who plants a tree. The government orders every factory to adopt a new technology, which reduces carbon-dioxide emissions into the atmosphere. The government charges…
43. A city currently emits 16 million gallons (MG) of raw sewage into a lake that is beside the city. Table 12.13 shows the total costs (TC) in thousands of dollars of cleaning up the sewage to different levels, together with the total benefits (TB) of doing so. Benefits include environmental, recreational, health, and industrial benefits. TC TB 16 MG Current Current 12 MG 50 800 8 MG 150 1300 4 MG 500 1850 O MG 1200 2000 Table 12.13 a. Using the information in Table 12.13 calculate the marginal costs and marginal benefits of reducing sewage emissions for this city. b. What is the optimal level of sewage for this city? How can you tell?
Which statement about externalities is wrong? O Markets are typically not efficient in dealing with externalities O Externalities can be positive or negative O A firm naturally takes into account negative externalities that result from their production O Interventions such as carbon taxes can help correct externalities gative externalities imply that the social cost is high than the internal (or private) cost
Why is climate change expected to exacerbate negative effects on women's environmental health? Oa Because of their family roles Ob. As a result of gender inequality Oc Because of women's limited resources due to poverty Od Due to women's larger share of the agricultural workforce
Incorrect Question 19 Which one of the following statements is false? The Clean Air Act sets pollution levels based on cost-benefit analysis. O Cost benefit analyses indicate that the Clean Air Act has produced significant net benefits. O The Clean Water Act uses technology-based pollution regulations. O The U.S. permit program for sulfur dioxide emissions is generally considered to be a successful program. The main problem with the European Union's carbon trading system has been price volatility.
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(Figure: The Socially Optimal Quantity of Emissions from Coal Production) Use Figure The Socialy Optimal Quarety of Emissions from Coal Production in the figure, firms are the only beneficiaries of polution, and costs are borne solely by others in the society. Without government intervention Marginal social cost, marginal social benefit MSC of pollution MSB of pollution Quantity of pollution emissions (tons) O The outcome cannot be determined without more information Orms will continue to polute until the marginal benefit to them is $200 O firms will continue to pollute until the marginal benate to them is zero. O the quantity of pollution will be optimal.
General questions Howshould the optimal price of carbon be set? Which alternative approaches are available and which factors determine the price of carbon?”
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4 An increase in per capita production and incomes can be expected to have a large effect in reducing emissions that lead to global warming. O false O true
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Quantity Marginal of Total Cost of Pollution Cost Reduction Reduction 1 20 20 50 30 3 110 60 200 90 5 380 180 6 660 280 Use the cost information from the table for a firm creates pollution. If there is a pollution charge of $45 per unit, how much will the firm reduce its pollution? O 1 4 3.