31. Economists and environmentalists agree that pollution is undesirable and tha

Question

31. Economists and environmentalists agree that pollution is undesirable and that government policy should aim to achieve a zero-pollution society. True False 32. An externality is said to exist when: individuals impose costs or benefits on others, and the market provides incentives to take these costs and benefits into account. individual actions are affected by government policies (such as taxes) that are externally imposed on the market. individual actions are affected by external forces like the loss of U.S. jobs because of competition from abroad. individuals impose costs or benefits on others but have no incentive to take these costs and benefits into account. 33. A copper mining operation discharges waste products into a river and causes higher costs and discomfort to downstream users of the water for which they are not compensated. In this case: too much of society's resources are being used to produce copper. there is an external benefit to society from copper production. too little of society's resources are being used to produce copper. the optimal amount of society's resources is being used to produce copper. 34. Suppose the federal government determines the total level of municipal sewage that can be discharged by cities along a river. If the cities are able to buy and sell rights to the total discharge level among themselves, then the government's environmental policy includes: command and control. tradable pollution permits. emissions taxes. regulations. 35. Betsy loves to garden, and her rose garden is enjoyed by everyone in her neighborhood. Because her consumption of rosebushes provides a positive externality to the community, the government should _____ because the market quantity of rosebushes is _____ than the socially optimal quantity. provide a subsidy; lower impose a tax; lower impose a tax; greater provide a subsidy; greater 31. Economists and environmentalists agree that pollution is undesirable and that government policy should aim to achieve a zero-pollution society. True False

Explanation / Answer

31. FALSE, THE AIM OF ECONOMISTS TO MAKE THE BEST OPTIMUM USE OF RESOURCES.

32. INDIVIDUALS IMPOSE COSTS OR BENEFITS ON OTHERS BUT HAVE NO INCENTIVE TO TAKE THESE COSTS AND BENEFITS INTO ACCOUNT.

33. TOO MUCH OF SOCIETY'S RESOURCES ARE BEING USED TO PRODUCE COPPER.

34. TRADABLE POLLUTION PERMITS.

35. PROVIDE A SUBSIDY ; GREATER. BECAUSE THE SOCIAL BENEFIT IS MORE AS SHOWN BY THE QUANTITY DEMANDED. THERE IS A GAP BETWEEN COST BENEFIT.

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