Which one of the following statements is false? a. The economically optimal level of pollution based on standard environmental economics is always less than the absorptive capacity of the environment. b. Standard economic theory generally assumes substitutability between resources. c. Satellite accounts can indicate the abundance or scarcity of natural resources over time. d. Cutting down forests is an example of natural capital depreciation. e. Complementarity suggests that both natural and manufactured capital are necessary for production.

Which one of the following statements is false? a. The economically optimal level of pollution based on standard environmental economics is always less than the absorptive capacity of the environment. b. Standard economic theory generally assumes substitutability between resources. c. Satellite accounts can indicate the abundance or scarcity of natural resources over time. d. Cutting down forests is an example of natural capital depreciation. e. Complementarity suggests that both natural and manufactured capital are necessary for production.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 10PA

See similar textbooks

Similar questions

In environmental economics: Suppose that society wants to reduce the quantity of discharged residuals into the natural environment, what are 3 ways to do so? What are some obstacles that could be associated with each one?
The climate policy toolkit has, to-date, mostly focused on demand side policies (i.e. policies that affect the pollution demand curve), some of which are ‘command-and control’ and others are market based (e.g. cap-and-trade schemes, carbon taxes). (a) Using a diagram or diagrams, explain how a cap-and-trade scheme could result in pollution reduction. (b) What is the Emissions Reduction Fund and what are its pros and cons? 1(c) Of the following four policy options, which one do you favour as a demandside policy and why? i. command-and-control in terms of a demand side climatechange ii. carbon tax iii. Emissions Reduction Fund iv. cap-and-trade scheme
Suppose California adopts environmental rules that permit manufacturers to emit more pollutants into the air, which affects air quality in Nevada and other neighboring states. This is an example of a/an_____________________. a. Intergovernmental transfer b. Coordination problem c. Optimal response d. Positive externality e. Negative externality
Use the model of environmental pollution to model the following changes in a polluting industry to: i) the socially optimal level of pollution; ii) the total abatement costs; and ii) the total damage costs (а) A new technology is invented that allows firms to reducе pollution associated with each level of production output. (b) The government announces a new commitnment to more strictly enforce current environmental regulations. (c) A new study finds the pollutant in question to be more carcinogenic than originally thought.
Explain the concepts given below by exemplifying them.a) Public Choice?b) Economic Efficiency?c) Pareto Optimality?d) Market Failure ?e) Government Failure?
Question 1. What is meant by "the market system?"   Question 2. How is the market system justified?   Question 3. What, exactly, is "fraud?"   Quesetion 4. What is an "externality?" Question 5. What is "market failure?"
Give typing answer with explanation and conclusion One advantage of an emissions tax over a cap-and-trade system is that a. permit markets can have transactions costs that taxes do not. b. taxes put a price on pollution, but cap-and-trade systems do not. c. once a cap-and-trade system is in place, there is no way for the government to adjust the price of permits. d. taxes are always popular.
The chapter defines private enterprise as a characteristics of market-oriented economies. What would public enterprise be? It is a characteristics of a command economies.
Questions for Further Discussion 1. It would seem that neighbors could easily negotiate among themselves to settle problems of local externalities such as noise and unsightly land uses. Yet most communities control these problems with local laws and regula-tions. Why? 2. Suppose courts changed rules regarding burden of proof, requiring polluters to show that their emissions are harmless, rather than pollutees to show that they have been harmed. What impact might this have? 3. Suppose a community weighed each resident's solid-waste disposal when it was picked up and published the individual totals each year in the local newspaper. Do you think this would lead to a reduction in the total quantity of solid waste disposed of in the community?
Suppose Fischer Pond is a common-property resource—anyone can fish without having to pay for access. Locke Lake is privately owned—people who want to fish must purchase one of a limited number of permits from the lake's owner each season. According to the incentives that private ownership creates, which of the following would you expect to happen? Check all that apply. The owner of Locke Lake is likely to keep the lake clean and unpolluted. The owner of Locke Lake is likely to limit the number of fishing permits in order to maintain a plentiful stock of fish. Fischer Pond is less likely to experience a dwindling stock of fish each season.
If education has private benefits to an individualas well as external benefits to society, explain whya less-than-optimal amount of education occurs.
Please don't copy 1. Draw a diagram which illustrates in economic terms how a carbon fee and dividend policy - a type of carbon tax on the sale of fossil fuels where the revenue from this tax is distributed regularly to a nation's population - would effect carbon emissions. 2. Referring back to the diagram you drew, how would a carbon dividends plan help reduce the efficiency loss from carbon emissions?