Question : 51) Direct pollution controls can be inefficient because, for any : 1384322

51) Direct pollution controls can be inefficient because, for any given amount of pollution reduction, they

A) create new pollution as they eliminate existing pollution.

B) take into account differing marginal costs among firms.

C) do not minimize the total cost of pollution abatement.

D) cost too much to enforce.

E) are not complied with by firms.

52) An important reason that direct controls are usually inefficient in reducing pollution is that

A) they create new pollution as they eliminate existing pollution.

B) different firms have different marginal costs of pollution abatement.

C) it costs too much to make sure that firms comply with the regulations.

D) they generally garner little political support and thus eventually fail.

E) firms have little incentive to comply with them.

53) All of the following are examples of direct pollution controls EXCEPT

A) auto emissions standards.

B) legislation requiring scrubbers on coal-fired power stations.

C) legislation imposing per-unit taxes on harmful emissions from a pulp and paper plant.

D) a ban on wood stoves in some communities.

E) a monetary fine in some communities for littering.

54) Federal regulation aimed at reducing greenhouse-gas emissions by setting some maximum level of emissions from each firm

A) is the best approach because the costs of reducing emissions are different for each firm.

B) is the best approach because firms will quickly reduce air pollution.

C) will usually not produce the desired reduction in emissions at the lowest possible cost.

D) will achieve the largest but not the most efficient reduction in emissions.

E) will achieve the least reduction in emissions but be the most efficient.

55) Direct controls for reducing pollution can be criticized from an economic viewpoint as

A) being ultimately unsuccessful in reducing pollution.

B) not being efficient in allocating the costs of pollution reduction among various firms and plants.

C) being inequitable in their application.

D) being easy to circumvent.

E) still allowing firms to pollute when a policy of “zero tolerance” is more appropriate.

56) Direct controls for reducing pollution are likely to be inefficient because

A) the cost of reducing pollution is greater than the benefit.

B) direct controls are impossible to monitor.

C) firms with different pollution abatement costs are facing identical regulations.

D) firms are not likely to comply with this method of government intervention.

E) firms’ output will rise above the socially optimal amount.

57) Automobile emissions standards are an example of

A) direct pollution controls.

B) emissions taxes.

C) tradable emissions standards.

D) market power.

E) a market-based environmental policy.

58) The banning of wood-burning stoves and fireplaces is an example of

A) safety regulations.

B) emissions taxes.

C) tradable emissions standards.

D) direct pollution controls.

E) a market-based environmental policy.

59) Which of the following environmental problems would be best addressed through the use of direct controls?

A) emissions from coal-fired electric generating stations that cause acid rain

B) emissions from ocean-going cruise ships

C) sulfur dioxide discharged from pulp and paper mills

D) the greenhouse gas emissions associated with residential home heating

E) a chemical additive in animal feed that pollutes groundwater and is toxic to humans

60) Consider two firms, A and B, that must engage in pollution abatement. If Firm A has a lower marginal cost of pollution abatement than Firm B, then

A) regardless of costs, it is equitable for both firms to face the same direct controls on their pollution.

B) reallocating all abatement activity to Firm A will reduce pollution and reduce the total cost of abatement.

C) reallocating some of Firm A’s abatement activity to Firm B will keep total abatement constant but will reduce the total cost of abatement.

D) reallocating some of Firm B’s abatement activity to Firm A can keep total abatement constant but reduce the total cost of abatement.

E) Firm B should lower its costs.