Question

{a}A firm's supply curve corresponds to its ________.
A.opportunity cost curve
B.marginal cost of production curve
C.total cost of production curve
D.production possibility frontier

{b}The goal of reducing the damages caused by the discharge of production and consumption residuals can be achieved by ________.
A.all of the choices are correct
B.reducing the residuals from production
C.reducing the quantity of goods and services produced
D.increasing recycling

{c}In the case of a negative externality like pollution where ________ is/are clearly defined and a small number of individuals are involved, bargaining and negotiations among these individuals can likely result in ________.
A.responsibility; a socially efficient outcome
B.property rights; a socially efficient outcome
C.property rights; equity
D.access; compensation

{d}A pollutant that stays in the environment in nearly the same amount that was originally released such that its stock in the environment builds up over time is known as ________.
A.an accumulative pollutant
B.a continuous emission
C.a non-point source pollutant
D.a global pollutant

{e}The total cost of producing a given level of output will fall as a result of technological progress.
A.True
B.False

{f}Consumers can influence production decisions leading to reduced residuals from production by ________.
A.recycling
B.demanding goods that are more environmentally friendly
C.buying and selling used goods
D.cutting back on consumption

{g}A ________ determined by the technical capacities in the economy together with the ecological facts of the natural system illustrates the possible ________ between goods produced and environmental quality.
A.production possibility frontier, trade-offs
B.production possibility frontier; incompatibilities
C.production function; incompatibilities
D.community indifference curve; trade-offs

Answer 1

{a}A firm's supply curve corresponds to its: B.marginal cost of production curve ( Portion of Marginal Cost curve above Average Variable cost curve).

{b}The goal of reducing the damages caused by the discharge of production and consumption residuals can be achieved by C.reducing the quantity of goods and services produced (by decreasing production, we can decrease the residuals)

(c}In the case of a negative externality like pollution where ________ is/are clearly defined and a small number of individuals are involved, bargaining and negotiations among these individuals can likely result in ________.

Ans: B.property rights; a socially efficient outcome (When property rights are defined, we can achieve socially efficient level).

(D)An accumulative pollutant

(E) True, because with technological progress, more can be produced at cheaper cost.

(F) B.demanding goods that are more environmentally friendl

(G) A.production possibility frontier, trade-offs