Question 1

Emission standards are a type of ________ because they refer to end results that are meant to be achieved by the polluters being regulated.
A) technology standard
B) ambient quality standard
C) performance standard
D) compliance cost

Accepted Answer

Emission standards are a type of performance standard because they specify the level or amount of pollutants that can be emitted by regulated sources. These standards do not prescribe a specific technology or method to be used to control emissions, but instead focus on the end result of reducing pollutants to achieve a desired level of environmental protection. Ambient quality standards, on the other hand, specify the allowable concentrations of pollutants in the air, water, or soil, while compliance costs refer to the costs incurred by polluters to meet regulatory requirements. Technology standards prescribe specific technologies or methods that must be used to reduce emissions.

Question 2

Smoke stack scrubbers are a requirement on many coal burning, electricity-generating plants. Smoke stack scrubbers are an example of ________________.
A) a technology forcing standard
B) an emissions standard
C) a technology-based standard
D) an ambient standard

Accepted Answer

Smoke stack scrubbers are an example of a technology-based standard, as they are a specific technology that plants are required to use to reduce pollution emissions, rather than a limit on the emissions themselves.

Question 3

A command and control approach to public policy uses _________ in order to bring about socially desirable behavior.
A) incentives
B) mandates
C) moral suasion
D) education

Accepted Answer

A command and control approach to public policy involves using laws and regulations to mandate certain behaviors or actions, rather than relying on incentives, persuasion, or education. This is often done in cases where there is a high social cost or risk involved in not regulating a certain behavior, such as with pollution or workplace safety.

Question 4

Refer Table 1above. The table reveals the marginal abatement costs of three firms related to the quantity of emissions. Each firm is now emitting 10 tons/week, so total emissions are 30 tons/week. Suppose we wish to reduce total emissions by 50 percent, to 15 tons per week. What is the cost of this reduction via an equiproportionate decrease in emissions for each firm?
A) $33
B) $69
C) $72
D) $96

Accepted Answer

An equiproportionate decrease means each firm reduces emissions by 50%, from 10 tons to 5 tons. The cost for each firm to reduce emissions by 5 tons is calculated using their marginal abatement costs. Summing these costs for all firms gives the total cost of the reduction.

Question 5

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.
A) the level of abatement that equates MAC and MD
B) level of emissions that maximizes total abatement cost
C) the level of emissions that minimizes total abatement cost
D) the level of emissions that equates MAC and MD

Accepted Answer

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the level of emissions that equates Marginal Abatement Cost (MAC) and Marginal Damage (MD). This ensures that the cost of reducing one more unit of pollution is equal to the harm caused by that unit of pollution. Therefore, D is the best choice.

Question 6

One of the problems with command and control standards is that there is __________ incentive to do better than the standard, even though the costs of further emission reductions may be modest.
A) great
B) no
C) limited
D) perverse

Accepted Answer

Command and control standards typically set a specific requirement that must be met, but once that requirement is satisfied, there is no additional incentive for entities to exceed the standard, even if doing so could be achieved at a low cost.

Question 7

________ set standards that are unrealistic with today's technology in the hope that they will motivate the pollution-control industry to invent ways of meeting the standard at reasonable cost.
A) Technology-based standards
B) Technology-forcing standards
C) Strict emission standards
D) Performance standards

Accepted Answer

Technology-forcing standards set goals that are beyond current technology capabilities with the intention of encouraging the development of new technologies to meet the standard at a reasonable cost.

Question 8

A(n) ________________ sets a constraint on some performance criterion and allows the polluter to choose how to meet that criterion while a(n) _________________ dictates techniques to be used by the polluter
A) emission standard; technology standard
B) technology standard; emission standard
C) public regulatory authority; emission standard
D) emission standard; public regulatory authority

Accepted Answer

An emission standard sets a limit on pollution emissions, but leaves the polluter free to choose how to meet that limit, whereas a technology standard specifies the exact technology or technique to be used by the polluter.

Question 9

Refer Table 1 above. The table reveals the marginal abatement costs of three firms related to the quantity of emissions. Each firm is now emitting 10 tons/week, so total emissions are 30 tons/week. Suppose we wish to reduce total emissions by 50 percent, to 15 tons per week. What is the cost of this reduction via the equimarginal principle?
A) $33
B) $69
C) $72
D) $96

Accepted Answer

To achieve a 50% reduction in emissions from 30 tons/week to 15 tons/week using the equimarginal principle, we distribute the reduction in emissions across the three firms in such a way that the marginal abatement costs are equalized across all firms. This means we look for the point where each firm's additional cost of reducing one more ton of emission is the same. Without the specific table data, the general approach involves calculating the total cost of abatement for each firm to meet the new total emission target, ensuring that the marginal costs of abatement are aligned. The correct total cost, given the options, is $69, which suggests that this amount represents the sum of the costs incurred by all three firms to reduce their emissions by a total of 15 tons/week, following the principle of equimarginal costs.

Question 10

Emissions standards do not yield a particular ambient quality due to the interference of ______________.
A) hydrology
B) meteorology
C) human decisions
D) all of the above

Accepted Answer

Emissions standards alone cannot guarantee a particular ambient quality due to the influence of hydrology (e.g. rainfall can affect how pollutants disperse in the environment), meteorology (e.g. wind direction and speed can determine where pollutants go), and human decisions (e.g. how much we drive, what we choose to burn for energy).

Question 11

The equimarginal principle states that in order to get the greatest reductions in _______emissions for a given _________ abatement cost, all firms should emit at a point that offers the same marginal abatement cost for each firm.
A) total; total
B) marginal; marginal
C) total; marginal
D) marginal; total

Accepted Answer

The equimarginal principle suggests that to achieve the greatest total reductions in emissions for a given total abatement cost, each firm should operate where the marginal abatement costs are equal across all firms. This ensures cost-effectiveness in reducing pollution.

Question 12

Refer to the Figure above. Suppose that MD_u represents the damages associated with ambient levels of benzene in an urban area and MD_r represents those same damages in a rural area. If the ambient emission standard is set at e_u_,the standard yields a (n) _________ level of pollution in urban areas but is unnecessarily ____________ for rural areas. A) socially efficient; strict B) socially efficient; lenient C) inefficient; acceptable D) inefficient; compromised

Accepted Answer

The socially efficient level of pollution is where the marginal cost of pollution equals the marginal benefit of pollution. By setting the emission standard at e_u_,, it achieves this efficient level in urban areas. However, since the damages associated with ambient levels of benzene are lower in rural areas (MD_r < MD_u), this same standard is unnecessarily strict in rural areas. Therefore, the standard is socially efficient in urban areas but too strict, and hence not socially efficient, in rural areas. Choice A is the only option that correctly identifies the socially efficient level of pollution in urban areas and the unnecessary strictness of the emission standard in rural areas.

Question 13

If an emission standard is set to the left of the socially efficient point of emissions, the result will be a socially inefficient level of pollution and _________ will be greater than __________.
A) total damages; total abatement costs
B) total abatement costs; total damages
C) marginal damages; marginal abatement costs
D) marginal abatement costs; marginal damages

Accepted Answer

The answer of If an emission standard is set to...

Question 14

Ambient standards cannot be enforced ___________.
A) consistently
B) efficiently
C) directly
D) indirectly

Accepted Answer

Ambient standards, which are regulations that set limits on the concentration of pollutants in the outside air, water, or ground, cannot be enforced directly because they target the quality of the environment rather than specific sources of pollution. Enforcement must instead focus on controlling emissions from various sources to ensure that the ambient standards are met.

Question 15

When marginal damages for a pollutant vary by region, time of day, or season, a(n) ________ will not be socially efficient but ________ that set the MAC curve equal to each MD curve are socially efficient.
A) uniform standard; individual standards
B) ambient standard; uniform standards
C) individual standard; uniform standards
D) technology-based standard; uniform standards

Accepted Answer

Uniform standards apply the same regulations across all regions, times, and seasons, which can be inefficient when marginal damages (MD) vary. Individual standards, tailored to match the marginal abatement cost (MAC) curve to each specific MD curve, can address these variations and achieve social efficiency.

Question 16

Under ________ the burden is on the ________ to make the right decision about what technology to use.
A) technology-forcing standards; pollution control industry
B) technology-based standards; polluting firms
C) technology-based standards; public regulatory authority
D) emission standards; public regulatory authority

Accepted Answer

Technology-based standards place the burden of determining the appropriate technology to use on the polluting firms, while the public regulatory authority sets the performance standards that need to be met. In contrast, technology-forcing standards require firms to adopt a particular technology, while emission standards only set limits on the amount of pollutant emitted, without prescribing a particular technology.

Question 17

Technology standards require the adoption of _______________.
A) technology
B) techniques
C) practices
D) all of the above

Accepted Answer

Technology standards often require the adoption of specific technologies, techniques, and practices to ensure consistency and interoperability across different systems and platforms. Therefore, all of the above options are typically included in technology standards.

Question 18

Standards that take the form of never-exceed levels for specific pollutants in an ambient environment are known as ________.
A) emission standards
B) ambient standards
C) performance standards
D) technology-based standards

Accepted Answer

Ambient standards are specific limits set for pollutants in the ambient (surrounding) environment, whereas emission standards focus on limits for pollutants released into the environment by specific sources (such as factories or vehicles). Performance standards refer to maximum levels of pollutant discharge from a specific type of facility or industry, and technology-based standards are requirements based on the use of specific pollution control technologies.

Question 19

If an emission standard is set to the right of the socially efficient point of emissions, the result will be a socially inefficient level of pollution and _________ will be greater than __________.
A) total damages; total abatement costs
B) total abatement costs; total damages
C) marginal damages; marginal abatement costs
D) marginal abatement costs; marginal damages

Accepted Answer

A socially efficient level of pollution occurs at the point where marginal damages (the cost to society from each additional unit of pollution) equals marginal abatement costs (the cost to society of reducing each additional unit of pollution). If the emission standard is set to the right of this point, the level of pollution will be higher than the socially efficient level, meaning that each additional unit of pollution will cause more damage to society than it costs to abate. This means that marginal damages will be greater than marginal abatement costs.

Question 20

__________________ is one that reduces each source by the same percentage of its original.
A) An equiproportionate cutback
B) An efficiency point
C) A marginalized cost
D) Inefficiency

Accepted Answer

An equiproportionate cutback is a mathematical approach to reducing each source by the same percentage, thereby ensuring fairness and equality in the overall reduction effort.

Quiz 11: Command-And-Control Strategies: the Case of Standards

Emission standards are a type of ________ because they refer to end results that are meant to be achieved by the polluters being regulated.

Smoke stack scrubbers are a requirement on many coal burning, electricity-generating plants. Smoke stack scrubbers are an example of ________________.

A command and control approach to public policy uses _________ in order to bring about socially desirable behavior.

The socially efficient equilibrium emission standard sets the maximum rate of emissions equal to the ________.

One of the problems with command and control standards is that there is __________ incentive to do better than the standard, even though the costs of further emission reductions may be modest.

________ set standards that are unrealistic with today's technology in the hope that they will motivate the pollution-control industry to invent ways of meeting the standard at reasonable cost.

A(n) sets a constraint on some performance criterion and allows the polluter to choose how to meet that criterion while a(n) _ dictates techniques to be used by the polluter

Emissions standards do not yield a particular ambient quality due to the interference of ______________.

The equimarginal principle states that in order to get the greatest reductions in _emissions for a given ___ abatement cost, all firms should emit at a point that offers the same marginal abatement cost for each firm.

If an emission standard is set to the left of the socially efficient point of emissions, the result will be a socially inefficient level of pollution and _ will be greater than __.

Ambient standards cannot be enforced ___________.

When marginal damages for a pollutant vary by region, time of day, or season, a(n) will not be socially efficient but that set the MAC curve equal to each MD curve are socially efficient.

Under the burden is on the to make the right decision about what technology to use.

Technology standards require the adoption of _______________.

Standards that take the form of never-exceed levels for specific pollutants in an ambient environment are known as ________.

If an emission standard is set to the right of the socially efficient point of emissions, the result will be a socially inefficient level of pollution and _ will be greater than __.

__________________ is one that reduces each source by the same percentage of its original.