expensive way of reducing total emissions by 2 tons?
(A) Legislate that both firms must reduce emissions by 1 ton
(B) Charge both firms $251 for every ton they emit
(C) Allow each firm to buy a $151 permit to pollute
(D) File an injunction to halt production until the firms reduce emissions by
2 tons
(E) None of the above
- In economic analysis, the optimum level of pollution
(A) is always zero
(B) is where the marginal benefits from further reduction equals the
marginal cost of further reduction
(C) occurs when demand crosses the private cost supply curve
(D) should be determined by the private market without any government
intervention
(E) None of the above
- Externalized costs of nuclear power include all of the following EXCEPT
(A) disposing of nuclear wastes
(B) government subsidies
(C) costs associated with Three Mile Island
(D) Price-Anderson Indemnity Act
(E) All are external costs.
- Which of the following is NOT part of a cost-benefit analysis?
(A) Judging whether public services provided by the private sector are
adequate
(B) Judging and assessing inefficiencies in the private sector and their
impact on health, safety, and environmental need
(C) Determining external costs to society
(D) Meeting societal needs in a cost-effective manner
(E) All are part of a cost-benefit analysis.
- A federal tax on a pack of cigarettes is an example of
(A) full-cost pricing
(B) an internal cost
