Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 12, Problem 6SCQ
Classify the following pollution-control policies as command-and-control or market incentive based.
- A state emissions tax on the quantity of carbon emitted by each firm.
- The federal government requires domestic auto companies to improve car emissions by 2020.
- The EPA sets national standards for water quality.
- A city sells permits to films that allow them to emit a specified quantity of pollution.
- The federal government pays fishermen to preserve salmon.
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Chapter 12 Solutions
Principles of Economics 2e
Ch. 12 - Identify the following situations as an example of...Ch. 12 - Identify whether the market supply curve will...Ch. 12 - For each of your answers to Exercise 12.2, will...Ch. 12 - Table 12.5 provides the supply and demand...Ch. 12 - Consider two approaches to reducing emissions of...Ch. 12 - Classify the following pollution-control policies...Ch. 12 - An emissions tax on a quantity of emissions from a...Ch. 12 - Four films called Elm, Maple, Oak, and (Shelly,...Ch. 12 - The rows in Table 12.7 show three market-oriented...Ch. 12 - Suppose a city releases 16 million gallons of raw...
Ch. 12 - The state of Colorado requires oil and gas...Ch. 12 - Consider the case of global environmental problems...Ch. 12 - A country called Sherwood is very heavily covered...Ch. 12 - What is an externality?Ch. 12 - Give an example of a positive externality and an...Ch. 12 - What is the difference between private costs and...Ch. 12 - In a market without environmental regulations,...Ch. 12 - What is command-and-control environmental...Ch. 12 - What are the three problems that economists have...Ch. 12 - What is a pollution charge and what incentive does...Ch. 12 - What is a marketable permit and what incentive...Ch. 12 - What are better-defined property rights and what...Ch. 12 - As the extent of environmental protection expands,...Ch. 12 - As the extent of environmental protection expands,...Ch. 12 - What are the economic tradeoffs between low-income...Ch. 12 - What arguments d0 low-income countries make in...Ch. 12 - In the tradeoff between economic output and...Ch. 12 - What does a point inside the production...Ch. 12 - Suppose you want to put a dollar value on the...Ch. 12 - Would environmentalists favor command-and-control...Ch. 12 - Consider two ways of protecting elephants from...Ch. 12 - Will a system of marketable permits work with...Ch. 12 - Is zero pollution possible under a marketable...Ch. 12 - Is zero pollution an optimal goal? Way or why not?Ch. 12 - From an economic perspective, is it sound policy...Ch. 12 - Recycling is a relatively inexpensive solution to...Ch. 12 - Can extreme levels of pollution hurt the economic...Ch. 12 - How can high-income countries benefit from...Ch. 12 - Technological innovations shift the production...Ch. 12 - Show the market for cigarettes in equilibrium,...Ch. 12 - Refer to Table 12.2. The externality created by...Ch. 12 - Table 12.12, shows the supply and demand...Ch. 12 - A city currently emits 15 million gallons (MG) of...Ch. 12 - In the Land of Purity, there is only one form of...
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- A system of tradable emissions permits ("cap and trade") ensures that: those who can reduce pollution at least cost will do so pollution will be at the level where marginal social benefit equals zero pollution will be at the level where marginal social cost equals zero there will be no pollutionarrow_forwardSummarize the effects of the Clean Air Act on U.S. air pollution.arrow_forwardA set of perfectly competitive companies produce shoes. 1 pound of water pollution (WP) is released into the ocean which has a social cost of $c (per pound). The private cost of pollution is $0 when unregulated. i) Graph supply and demand curves and show the output and price of the unregulated market as well as the socially optimal output. ii) Indicate on the graph the amount of tax that would lead to the socially optimal level of production. iii) One of the companies produces Q shoes. Say there are pollution-reducing machines, K, which cost $1 each. When K = Ő machines, WP = 1 pound. With higher K, WP is lower. Give the cost-minimizing choice of WP and K when pollution is unregulated? Please explain with a diagram. iv) What would be the optimal tax rate if the government were to tax water pollution? v) When output of shoes Q is held constant, how do K and WP change when a pollution tax is instated?arrow_forward
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