Microeconomics Ch 12-15

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ECO 213 MICROECONOMICS (100 points) NAME:
Chapters 12-15: Homework
DUE: April 16, 2012

1.A regulated natural monopoly is more likely to spend more money on employee healthcare under which of the following types of regulation? A. Price regulation.
B. Profit regulation.
C. Output regulation.
D. Social regulation.
2.Hiring over 260,000 U.S. federal workers to oversee and operate regulatory agencies involves: A. Zero costs since the market outcomes will be improved.
B. Government failure in every case.
C. Forgoing output that could be produced if the workers were employed elsewhere. D. Some opportunity costs only if market outcomes do not improve. 3. When the regulatory process itself stops a new company from forming, society experiences: A. Compliance costs of regulation.

B. Administrative costs of regulation.
C. Budgetary costs of regulation.
D. Efficiency costs of regulation.
4.When there is market failure:
A. Government intervention is always beneficial.
B. A laissez-faire approach is the best policy.
C. Government intervention is beneficial only in the case of natural monopolies. D. Government intervention is beneficial only when the benefit of intervention exceeds the cost.

5.Which of the following is a form of water pollution?
A. Slaughter waste.
B. Thermal pollution.
C. Smog.
D. Solid-waste pollution.

6.A five-cent container deposit on bottles:
A. Decreases the incentive to recycle.
B. Increases the incentive to recycle.
C. Makes it more profitable for firm's to use these containers. D. Encourages pollution.

7.Firm A finds it very expensive to reduce its sulfur dioxide emissions, while Firm B finds it very cheap to reduce it sulfur dioxide emissions. If a program of tradable pollution permits was enacted, we would most likely see: A. Both firms decrease their sulfur dioxide emissions by the same amount. B. Both firms increase their sulfur dioxide emissions by the same amount. C. Firm A reduces its emissions by more than Firm B.

D. Firm B reduces its emissions by more than Firm A.

8.If the tax on gasoline is increased to provide incentives to curb air pollution, then the tax serves as: A. A green tax.
B. A command and control standard.
C. A pollution fine.
D. An emission charge.

9.A polluting company can be billed in proportion to its pollution through fees such as: A. Pollution fees.
B. Emission charges.
C. Privatization.
D. Tradable pollution permits.

10.Which of the following is an example of bypassing market incentives through regulation to achieve environmental protection? A. Privatization.
B. Command and control standards.
C. Pollution fines.
D. Green taxes.

11.In the U.S., in general, farmers behave most like:
A. Monopolies.
B. Oligopolies.
C. Perfect competition.
D. Natural monopolies.

12.Farm price-support programs may take the form of price: A. Price Ceilings, which cause shortages.
B. Price Floors, which cause shortages.
C. Price Ceilings, which cause surpluses.
D. Price Floors, which cause surpluses.

13.Which of the following agricultural programs is intended specifically to restrict the supply of goods? A. Subsidies.
B. Acreage set-asides.
C. Loan deficiency payments.
D. Disaster payments.
Dirty Air Can Shorten Your Life (text pg 286 “In The News”) Source: The Washington Post, March 10, 1995. © 1995 The Washington Post. Used with permission by PARS International Corp. The largest study ever conducted on the health effects of air-borne particles from traffic and smokestacks has found that people in the nation's most polluted cities are 15 to 17 percent more likely to die prematurely than those in cities with the cleanest air. This form of pollution is killing citizens even in areas that meet Environmental Protection Agency air quality standards, said study coauthor Douglas Dockery of the Harvard School of Public Health, who said “the impact on life and health is more pervasive than previously...
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