problem questions Flashcards
Which of the following is among the three types of environmental control costs that were discussed in Chapter 9 and in the class discussion of Box 1 of the 5-Box diagram?
- required ad on controls
- costs of moving pollution to lower damage areas
does looking at only wage or housing market result in notable upward bias?
no
The condition best characterizing the economists’ solution to how
many to allow access to an environmental amenity (e.g. wilderness area)
let people in as long as the value of their experience is at least as
large as the aggregate harm they impose on others.
When residuals are sufficiently large to result in negative externalities what will the result be/
- non optimally dirty environments
- more than optimal amt of residuals from firms and households
coase theorem argues that in certain cases
it does not matter who property rights are assigned to we will get efficient outcomes either way
case with only two firms, what is the impact of taxing emissions vs cap and trade system
lower profits for the two firms
two projects have same NPV, should I choose policy with higher or lower PVC?
neither project is preferred on efficiency grounds
is the goal of economists to produce goods at level where total benfits equal total costs to society?
no
