Economics quiz 3 of 4?

Question

1. One of the conclusions of A. C. Pigou was that

a. a system of mandatory controls is the only effective means to control pollution.

b. a system of charges can be an effective means to control pollution.

c. pollution will wither away if a socialist system is in place.

d. pollution cannot be adequately addressed in a price system.

e. industry is self-policing when it come to pollution.

2. Environmentalists, politicians, and economists have different perspectives on what constitutes appropriate environmental policy. Which of the following statements was probably made by an economist?

a. “We take the position that there are rights involved here, rights to be protected from threats to your health, regardless of the costs involved.”

b. “Protecting the environment is so important that standards cannot be too high, and continuing improvements must be made regardless of cost.”

c. “Pollution is a moral issue that cannot be reduced to dollars and cents.”

d. “Clean air and water are things we can buy—if the price is right.”

e. ”Protecting the environment is so important that it cannot be left to the market system.

3. One of the major reasons why communism ended in the Soviet Union is

a. major discontent with the pollution and environmental damage.

b. a desire to obtain greater output even at some cost to the environment.

c. tight pollution control laws on state but not private firms.

d. a refusal of communist authorities to allow pollution, which slowed growth rates.

e. an over concern of communist leaders with environmental problems.

4. China, the last large communist society,

a. has proved that a command economy has far less pollution problems than capitalist economies.

b. has urban smog levels three times as high as Los Angeles.

c. has the world’s most sophisticated pollution-control devices.

d. has lowered its level of pollution dramatically since 1980.

e. is causing most of the world’s pollution.

5. Because of the law of conservation of matter and energy,

a. inputs can be transformed into finished goods, and then are gone..

b. inputs can never disappear, and will eventually become a waste.

c. outputs cause an equal volume of raw materials for further production.

d. energy generating can eventually eliminate all waste completely.

e. output generates not only waste matter but also more than enough energy to eliminate that waste matter.

Answer 1

1. b

2. I guess d

3. a

4. Red China is capitalist and never was communist, but b sounds right

5. b