The identification of environmental problems and an active search for their solutions has been ongoing ____________.

in rich industrial countries during the last century
in rich industrial countries over the last 20 years
since the eighteenth century
since the fourteenth century

In the absence of property rights, a factory will dump waste into a waterway up to the point where its _________________.

marginal benefit is maximized
marginal revenue equals marginal cost
marginal benefit equals marginal social cost
total benefit is maximized

A large farming operation which uses a potent fertilizer is located upriver from a trout farmer. If property rights of the river exist and transactions costs are low, the level of pollution will be _________________.

efficient if either the farming operation or the trout farmer own the river
inefficient if the farming operation owns the river
always inefficient
efficient if the trout farmer owns the river

A country has several factories that emit sulfur dioxide. The government may be able to overcome the accompanying environment externalities by all of the following except ___________.

emission charges
taxes
marketable permits
private negotiation with each factory

One reason why pollution rates in some developing countries are high is that ____________.

producers have increased marginal costs
the citizens do not care about global warming
the government subsidizes the use of coal or oil
the citizens are misinformed

The knowledge that you gain from your economics course is _________________.

a consumer good
a marginal cost
a productive resource
a consumer good and a productive resource

When people determine the quantity of education they will undertake, they _______ the external benefits. As a result, if education were left to an unregulated market, people would undertake too _______ education.

overvalue; much
undervalue; much
undervalue; little
overvalue; little

Governments can achieve an efficient allocation of resources in the presence of external benefits from education and research and development through all of the following items except _______________.

subsidies
patents and copyrights
below-cost provision
scholarships

Knowledge __________________.

creates external costs
like other productive resources, has diminishing marginal productivity
does not display diminishing marginal productivity
and the use of computers do not have diminishing marginal productivity

The use of a patent incurs an economic cost because the owner is a _______________.

monopoly that produces the competitive quantity of the good
monopoly that sets the price below the marginal cost of production
monopoly that sets the price equal to the marginal cost of production
monopoly

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