Solved by verified expert :14)
Firms are likely to prefer a pollution tax to a command-and-control policy
because the command-and-control policy will
A)
increase the costs of production more than a pollution tax.
B)
result in the price of the good rising more than under a pollution tax.
C)
result in consumers buying less of the good than under a pollution tax.
D)
all of the above
15)
An advantage offered by pollution taxes that is NOT offered by
command-and-control policies is that
A)
under pollution taxes pollution is usually reduced to zero.
B)
a pollution tax decreases the price of the polluting good.
C)
under pollution taxes, the government receives tax revenues that may be used to
clean up pollution.
D)
pollution taxes decrease the demand for the good generating the pollution.
16)
An advantage of pollution taxes that is NOT offered by command-and-control
policies is that
A)
with a pollution tax zero pollution is produced.
B)
a pollution tax decreases the price of the polluting good.
C)
with a pollution tax, firms have flexibility in their choice of strategies to
use to clean up pollution.
D)
a pollution tax decreases the demands for goods that cause pollution.
17)
Tax revenues are an advantage of ________ not offered by command-and-control
policies.
A)
pollution allowances
B)
tradeable pollution permits
C)
pollution taxes
D)
pollution tax credits
Recall the Application about reducing pollution
generated from international shipping to answer the following question(s).
18)
Recall the Application. Of the following CO2 reduction methods for
international shipping, which has the lowest marginal abatement cost (MAC)?
A)
weather-sensitive routing
B)
switching from diesel to gas-powered engines
C)
reducing speed and increasing fleet size
D)
installing fixed sails and wings
19)
Recall the Application. Of the following CO2 reduction methods for
international shipping, which has the highest marginal abatement cost (MAC)?
A)
weather-sensitive routing
B)
switching from diesel to gas-powered engines
C)
reducing speed and increasing fleet size
20)
Command-and-control policies are undesirable ways of reducing pollution because
the means of abatement they mandate may not be efficient for all firms.
21)
Command-and-control policies are desirable because their tough pollution
reduction targets force firms to develop new technologies to survive.
22)
Command-and-control policies generally reduce pollution more than pollution
taxes do.
23)
Command-and-control policies lead to higher prices for consumers than pollution
taxes do.
