Ask Question, Ask an Expert


Ask Public Economics Expert

Multiple Choice problems

Instructions:  Enter either A, B, C, or D (only one) after each of the following problems to indicate your best answer.


Taxes and permits provide incentives for firms to:

A. Invest in new, more cost-effective abatement technologies
B. Achieve economic efficiency.
C. Provide regulatory agencies information on abatement costs.
D. A and B


Which of the following can be used to correct for externalities in large numbers cases:

A. Taxes
B. Directives
C. All of the above.
D. None of the above.


Uniform directive polices penalize:

A. Firms with high abatement costs.
B. Firms with low abatement costs.
C. Firms that do not have equal abatement costs.
D. Firms that have equal abatement costs.


There is a higher incidence of pollution taxes on producers if:

A. Pollution taxes are imposed equi-marginally.
B. The pollution is associated with the production of luxuries.
C. There is a market failure.
D. The pollution is associated with the production of necessities.

221_Marginal losses.jpg

The figure given above describes the costs and benefits resulting from logging operations in a national forest. A logging company gains profits from increased lumber production according to the "Marginal Gain of Loggers" curve. At the same time, recreational anglers lose fishing opportunities in trout streams that are negatively affected by the logging operations. The "Marginal Loss of Anglers" curve describes the loss of value suffered by these anglers as lumber production increases. The letters A through H describe individual areas within the graph.

For problems 5 through 8, assume that the Forest Service has decided to allow the logging company to harvest any amount of lumber from X1 to X5.  Further assume that the anglers are not organized enough to be able to affect that decision.


What level of lumber production will result without negotiation?

A. X1
B. X3
C. X5
D. None of the above.


What will be the total loss suffered by the anglers without negotiation?

A. Areas A + B + C + D + E + F
B. Areas A + B + E + F
C. Areas C + D + G + H
D. Areas A + B + C + D + G + H


What would be the total potential gains from trade if the logging company and the anglers were able to negotiate?

A. Areas A + B
B. Areas E + F
C. Areas C + D
D. Areas G + H


If the logging company was considering an offer of compensation by the anglers for a reduction in production from X5 to X4, what would be its minimum willingness to accept payment?

A. Area A
B. Areas A + B
C. Areas C + D
D. Area D


The fundamental principle of the Porter Hypothesis is:

A. Different efficient allocations can be achieved by market processes through appropriate re- distributions of wealth.
B. Environmental regulations must be both stringent enough and flexible enough to induce firms to meaningfully re-examine their production processes
C. The total amount of mass and energy is constant (although mass and energy can interconvert).
D. Given an initial allocation the (perfectly competitive) market achieves an efficient allocation.


Net benefit is the appropriate measure of desirability since:

A. Cost must be added to the benefits to determine the desirability of the action.
B. It reflects the reality that costs must be paid.
C. It achieve economic efficiency.
D. A and C


The marginal benefits of abatement generally decrease as the level of abatement increases because:

A. An increase in abatement given an already high level of abatement is generally valued less than a similar increase given a low level of abatement.
B. An increase in abatement given an already high level of abatement generally costs more than a similar increase given a low level of abatement.
C. The marginal benefit curve needs to cross the marginal cost curve to achieve economic efficiency.
D. The marginal benefit curve is also known as a demand curve and demand curves slope downward.


An economic allocation describes:

A. A potential distribution of wealth (or resources).
B. Is not necessarily fair.
C. Requires someone to be rich and someone to be poor.
D. A and B


Externalities violate which characteristic of efficient property rights

A. Exclusivity
B. Universality
C. Transferability
D. Enforceability


Which of the following is not an impediment to economic efficiency

A. Externalities.
B. Property resources that are not exclusively controlled by an individual.
C. The initial distribution of resources or wealth.
D. Public goods.


Which of the following does not tend to cause a "free rider" problem.

A. One cannot exclude use by others.
B. Governments achieve distributive equity.
C. Benefits are simultaneously provided to many individuals
D. A, B, and C

Public Economics, Economics

  • Category:- Public Economics
  • Reference No.:- M93551

Have any Question? 

Related Questions in Public Economics

Global economics assignment q1 jlease an aircraft leasing

Global Economics Assignment Q1. JLease, an aircraft leasing company, is expanding and needs to borrow in order to finance a fleet of new luxury small jet aircraft that it then will lease to various corporations and organ ...

Markets and the economics of the public sectoryou have been

Markets and the Economics of the Public Sector You have been assigned to a team that has the responsibility of preparing a paper consisting of 1,750 words for the governor's next economic conference. Your paper should ad ...

Assignment 1prepare your responses to these assignment

Assignment 1 Prepare your responses to these assignment problems in a word processing file; put financial data in a spreadsheet file. As you complete the assignment problems for each lesson, add your responses to these f ...

Homeworkwrite a 3-4 page analysis of the article listed

Homework Write a 3-4 page analysis of the article listed below on how you see your career path supporting the direction of an organization while motivating and leading employees to be a high performance team. This does n ...

Homeworkwrite an essay of 500-750 words on how the

Homework Write an essay of 500-750 words on how the interpretation of the Equal Protection Clause has changed and what impact this change has had on public institutions, private enterprises and minorities. A minimum of o ...

Discussion questions the perils of obediencebrainstorm your

Discussion Questions: The Perils of Obedience Brainstorm your answers to the following questions. Be prepared to share your original ideas in a class discussion. 1. How far were most people willing to go to obey authorit ...

Section achoose three out of the four short questions below

SECTION A: Choose Three out of the four short questions below. All questions are marked equally. 1. Prove that when voters are strategic in their voting behavior (no ab-stention allowed and two or more candidates are com ...

Public sectorconcern among the public sector is the demand

Public Sector Concern among the public sector is the demand for public organizations to be transparent about their budgets and spending habits. You have been scheduled to conduct a presentation for the State Budgeting Co ...

Homeworkscholarly activitythis unit asks you to think about

Homework Scholarly Activity This unit asks you to think about your own culture in terms of norms, values, beliefs, and behaviors. The unit also asksyou to think about those agents of socialization most closely related to ...

1in the malthusian model let the production function be y

1. In the Malthusian model, let the production function be y = 10-.1L, or y = 10-(1/10)L, the death rate schedule be 60-10y, and the birth rate be 40 per thousand. Draw the production function (y on the horizontal axis a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate