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ENVIS - Environmental Economics Centre - Quiz

 

 

 

         

Quiz 4

 

1. The fact that a public bad is non - rival means that

 A. 

some consume the same quantity of public bad.

 B.  

everyone consumes the same quantity of the public bad.

 C.  

everyone consumes different quantities of of the public bad.

 D.  

some consume the different quantities of public bad.

    

2. Spatially differentiated emission fees for each source should be set equal to __________ at the efficient amount of pollution , multiplied by the Transfer Co.efficient.

 A. 

Marginal Damage.

 B.  

Marginal Cost.

 C.  

Marginal Benefit.

 D.  

Marginal Social Cost.

    

3. One major problem with multiple area sources of pollution (eg: automobile pollution or agricultural runoff) is that

 A. 

Sources are directly observed.

 B.  

Sources are not directly observed.

 C.  

Emissions are not directly observed.

 D.  

Emissions are directly observed.

    

4. Which among the following method of environmental valuation involves finding a link between environmental change and production condition for some marketed goods.

 A. 

Travel Cost Method (TCM).

 B.  

Contingent Valuation Method (CVM).

 C.  

Hedonic Pricing.

 D.  

Production Function.

    

5. Who said :  " The negative externality was attributed to absence of well defined property rights on environmental resources and high transaction cost in finding solutions via barganing between polluters "

 A. 

Samuelson.

 B.  

Pigou.

 C.  

Coase.

 D.  

Hicks.

    

6. In a pollution permit trading market, regulated firms will

 A. 

Set their marginal Abatement costs equal to other firms Marginal Abatement Costs.

 B.  

Set Marginal Abatement Costs equal to the Marginal Benefit.

 C.  

Set Marginal Benefit equal to the pollution they emit.

 D.  

Pay more for pollution abatement than if firm-by-firm standards are set.

    

7. The Marginal Benefit Curve for pollution abatement indicates all of the following except

 A. 

The demand for pollution abatement.

 B.  

Wilingness to pay for pollution abatement.

 C.  

The marginal costs of pollution abatament are increasing.

 D.  

The marginal damages of pollution abatement are increasing.

    

8. The command and control regulations, such as standards on firm by firm basis

 A. 

are appropriate when the optimal level of pollution is at or near zero.

 B.  

are economic tools for encouraging low cost pollution abatement.

 C.  

are less costly than tradeable pollution permit market.

 D.  

are appropriate when the optimal level of pollution is unknown.

    

  

 





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