When economists discuss the environment, they emphasize the _______________.

costs only
differences between themselves and environmentalists
costs and benefits
benefits only

The greatest source of air pollution is _________________.

electric utilities
solid waste disposal
industrial processes
road transportation

_______ are social arrangements governing the ownership, use, and disposal of resources, goods, and services.

Externalities
Property rights
Legal ownership laws
Emission charges

According to the Coase theorem, if property rights exist and transactions costs are low, ________________.

the property must belong to the polluter
the property must belong to the party that is inconvenienced
private transactions are inefficient
private transactions are efficient

Marginal social cost is equal to ___________________.

the external cost
marginal private cost plus the marginal cost imposed on others
the marginal cost imposed on people other than the producer
the value of the tax that will make the market efficient

Marginal benefit to others _________________.

is graphed as an upward sloping curve
is always less than the marginal private cost
is called marginal social benefit
plus marginal private benefit equals marginal social benefit

Under the "prisoners' dilemma" scenario, industrial countries _______________.

will control pollution and developing countries will pollute
and developing countries will both pollute
will pollute and developing countries will control pollution
and developing countries will both control pollution

Governments can use subsidies _________________.

to achieve an efficient outcome
when they want to increase taxes
only when marginal social benefit equals marginal social cost
as a means of increasing government spending

Property rights for discoveries that are owned by creators of knowledge are called _________ property rights.

knowledge
creative
academic
intellectual

A patent or copyright grants its owner exclusive use _______________.

until the owner's death
until the market becomes efficient
for a given number of years
for as long as the owner desires

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