Test Bank + Answers Ch11 Command-And-Control Strategies The

Chapter 11

Command-and-Control Strategies: The Case of Standards

Multiple Choice Questions
 

1. 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

Difficulty: Easy 

2. 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

Difficulty: Moderate 

3. 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

Difficulty: Easy 

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

Difficulty: Moderate 

5. 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

 
Difficulty: Easy 

6. ________ 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

Difficulty: Easy

7. 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

Difficulty: Easy

8. 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

Difficulty: Easy

9. 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

Difficulty: Easy

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

 
Difficulty: Easy

11. 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

 
Difficulty: Easy

12. 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

 
Difficulty: Easy

13. 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

 
Difficulty: Moderate

14. 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

Difficulty: Easy

15. __________________ 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

 
Difficulty: Easy

16. 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 both firms are subject to the same abatement cost curve, the socially efficient level of emissions for each region reveals

A. lower concentrations of benzene in the urban area.
B. higher concentrations of benzene in rural areas.
C. lower concentrations of benzene in rural areas.
D. both A. and B.

 
Difficulty: Moderate 

17. 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

 
Difficulty: Easy

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18. 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

 
Difficulty: Easy

TABLE 1

Marginal abatements costs ($/ton)

Emissions (tons/week) Firm 1 Firm 2 Firm 3

10 $0 $0 $0

9 4 1 1

8 8 2 2

7 12 4 3

6 16 6 4

5 20 8 5

4 24 12 6

3 28 20 7

2 36 24 8

1 46 28 9

0 58 36 10

19. 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

 
Difficulty: Easy

20. 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

 
Difficulty: Easy

21.  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

 
Difficulty: Easy

22. Refer to the Figure above. Assume that a firm is facing MAC₁ and an emissions standard of e₂. What is the firm’s cost of compliance for this level of emissions?
A. a
B. (e+d+c)
C. (a+b+c+d)

D. (a+b)

Difficulty: Easy

23. Refer to the Figure above. Assume that a firm is facing MAC₁ and an emissions standard of e₂. What is the firm’s incentive to engage in R&D so that abatement costs are reduced to MAC₂?
A. a
B. (e+d+c)
C. (a+b+c+d)

D. (a+b)

Difficulty: Easy

 

24. Refer to the Figure above. Assume that a firm is facing MAC₁ and an emissions standard of e₂. What is the firm’s reduction in compliance costs in obtaining the emission standard of e₂ if the firm is successful in reducing abatement costs from MAC₁ to MAC₂?
A. a
B. (e+d+c)
C. (a+b+c+d)

D. (a+b)

Difficulty: Easy

25.  Emission standards specify the technologies, techniques, or practices that­­­­­­­___________.
A. are the best practices
B. ensure that there is no health risk to the population
C. achieve the best pollution results with the least possible costs
D. potential polluters must adopt

 
Difficulty: Easy

26.  Ambient quality of river water depends on ____________.
A. emissions
B. hydrology
C. meteorology
D. A and B

 
Difficulty: Easy

27.  When marginal damages for a pollutant vary by region, time of day, or season,

A. a uniform standard yields a socially efficient level of pollution.
B. individual standards that equate the MAC to each MD yield a socially efficient level of pollution.
C. there is no current regulation approach that will yield a socially efficient level of pollution.
D. technology standards yield a social efficient level of pollution.

 
Difficulty: Moderate

28 Technology-based standards

A. are always cost effective.
B. encourage firms to seek out new technology.
C. provide firms with no incentive to find cheaper ways to reduce their emissions.
D. all of the above.

 
Difficulty: Easy

 29. When determining the socially efficient level of emissions,
A. enforcement costs should be included to determine an accurate cost of emission reductions.
B. enforcement costs should not be considered a part of the cost of emission reductions.
C. enforcement costs should only be considered a part of the cost of emissions reductions if the firm considers the costs in their abatement cost curve.
D. enforcement costs cannot be accurately estimated and should not be considered.

 
Difficulty: Easy

30. There are several ways to monitor a firm’s emissions, included among these are
A. self-monitoring.
B. remote monitoring technology.
C. continuous measurement with electronic monitoring.
D. all of the above.

 
Difficulty: Easy

31. The Massachusetts Department of Environmental Protection has banned the disposal of commercial organic waste by businesses and institutions that dispose of one ton or more of the materials per week. This is an example of

A. a technology standard

B. an emissions standard

C. an ambient standard

D. a property rights standard

32. Boulder, Colorado, sets the maximum number of decibels permitted by a source from 7 a.m. to 11 p.m. in a residential area to be 55dBA. One exception is if the sound was made by an animal. This is an example of

A. a technology standard

B. an emissions standard

C. an ambient standard

D. a property rights standard

33. The Barber, Cosmetology, Esthetics, Hair Braiding, and Nail Technology Act requires hospital grade disinfectant be used at workstations after each client. This is an example of

A. a technology standard

B. an emissions standard

C. an ambient standard

D. a property rights standard

34. The World Health Organization sets guidelines for exposure to carbon monoxide at a 10ppm or less average over 8 hours. This is an example of

A. a technology standard

B. an emissions standard

C. an ambient standard

D. a property rights standard

35. Total emissions from 2-stoke, leaf blowers can be decreased by

A. reducing the number of leaf blowers in use

B. changing the power technology of leaf blowers

C. tightening emissions standards of 2-stroke engines

D. all of above