| 1. |
The fact that a public bad is non - rival means that |
A. |
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some consume the same quantity of public bad. |
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B. |
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everyone consumes the same quantity of the public bad. |
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C. |
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everyone consumes different quantities of of the public bad. |
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D. |
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some consume the different quantities of public bad. |
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| 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. |
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Marginal Damage. |
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B. |
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Marginal Cost. |
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C. |
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Marginal Benefit. |
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D. |
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Marginal Social Cost. |
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| 3. |
One major problem with multiple area sources of pollution (eg: automobile pollution or agricultural runoff) is that |
A. |
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Sources are directly observed. |
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B. |
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Sources are not directly observed. |
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C. |
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Emissions are not directly observed. |
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D. |
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Emissions are directly observed. |
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| 4. |
Which among the following method of environmental valuation involves finding a link between environmental change and production condition for some marketed goods. |
A. |
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Travel Cost Method (TCM). |
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B. |
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Contingent Valuation Method (CVM). |
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C. |
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Hedonic Pricing. |
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D. |
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Production Function. |
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| 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. |
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Samuelson. |
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B. |
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Pigou. |
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C. |
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Coase. |
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D. |
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Hicks. |
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| 6. |
In a pollution permit trading market, regulated firms will |
A. |
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Set their marginal Abatement costs equal to other firms Marginal Abatement Costs. |
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B. |
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Set Marginal Abatement Costs equal to the Marginal Benefit. |
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C. |
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Set Marginal Benefit equal to the pollution they emit. |
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D. |
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Pay more for pollution abatement than if firm-by-firm standards are set. |
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| 7. |
The Marginal Benefit Curve for pollution abatement indicates all of the following except |
A. |
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The demand for pollution abatement. |
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B. |
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Wilingness to pay for pollution abatement. |
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C. |
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The marginal costs of pollution abatament are increasing. |
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D. |
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The marginal damages of pollution abatement are increasing. |
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| 8. |
The command and control regulations, such as standards on firm by firm basis |
A. |
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are appropriate when the optimal level of pollution is at or near zero. |
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B. |
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are economic tools for encouraging low cost pollution abatement. |
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C. |
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are less costly than tradeable pollution permit market. |
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D. |
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are appropriate when the optimal level of pollution is unknown. |
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