Pollution and the Environment Quiz

Which of the following statements is MOST accurate? The problem of pollution is...

• worldwide, though U.S. consumers contribute more to pollution per capita than consumers elsewhere.
• a problem peculiar to societies with high levels of technological development.
• primarily a U.S. problem.
• most serious in countries where economic growth does not offset the costs of pollution.

Which of the following is the BEST example of an external diseconomy?

• Tongue and Groove Wood Processing plant dumps its waste into the Blue River, causing some fish downstream in the Beady Eye Hatchery to die.
• Beady Eye Hatchery sues Tongue and Groove Wood Processing, with the result that T&G is required to restore the water in the Blue to its original state.
• Tongue and Groove Wood Processing finds an alternate way to dispose of its waste.
• Tongue and Groove compensates Beady Eye for the loss of its fish.

Firms that pollute tend to overproduce MAINLY because

• they are not restricted by government regulation.
• the artificially low price they pay for resources makes production cheaper.
• high production is their way of compensating consumers for pollution.
• consumers will pay the cost of the pollution through higher prices.

At present, the PRIMARY means by which government intervenes to control the nation’s pollution problem is through...

• effluent fees.
• private cost assessment.
• tax credits for pollution-controls.
• direct regulation.

From an economist’s standpoint, probably the most sensible goal for our society is to...

• live with the current pollution level since, realistically, there is little to be done.
• continue searching for ways to minimize the sum of pollution and pollution control costs.
• limit pollution to a point where pollution costs and pollution control costs match.
• eliminate pollution, even if it means some cutback in economic growth.

An economist would MOST LIKELY agree with which of the following statements? Pollution is MAINLY attributable to...

• rapid advances in technology.
• our lack of knowledge about how to use resources efficiently.
• too much laxity among government regulatory agencies.
• human choices.