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DeVry ECON 410 Midterm Exam

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https://devryfinalexams.com/products/econ-410-midterm-exam/

1. Question : (TCO 1) What term is given to pollutants that are induced by human activity?
Student Answer: Anthropogenic Pollutants
Pollutant induced by non artificial processes
Criteria Pollutant
Hazardous Pollutant
2. Question : (TCO 1) What agency oversees environmental policy planning in the U.S.?
Student Answer: Centers for Disease Control and Prevention
U.S. Department of Agriculture
Environmental Protection Agency
U.S. Food and Drug Administration
3. Question : Use the diagram to complete the following sentence.
(TCO 2) A firm achieves profit maximization at the point where __________.
Student Answer: MR is greatest
MR > MC
MR = MC
MR < MC
4. Question : (TCO 2) When the government intervenes in the market by setting the price for a good
below the equilibrium price, the result would be: Student Answer: a shortage of the good. rationing of
the good on first-come-first-served basis. excess demand for the good. economic inefficiency. All of the
above

5. Question : (TCO 3) An example of a good that would be Good D is: Non-Excludable Excludable NonRivalrous Good A Good B Rivalrous Good C Good D Student Answer: a pair of shoes. clean air. a toll road.
a national park.
6. Question : (TCO 3) An example of a good that would be Good C is: Non-Excludable Excludable NonRivalrous Good A Good B Rivalrous Good C Good D Student Answer: a pair of shoes. clean air. a toll road.
a national forest.
7. Question : (TCO 3) At what point do we achieve the optimal pollution level? Student Answer: At the
point where marginal benefit of one additional unit of pollution abatement equals the marginal cost of
that unit At the point where marginal benefit of one additional unit of pollution abatement is greater
than the marginal cost of that unit At the point where marginal benefit of one additional unit of
pollution abatement is less than the marginal cost of that unit It is impossible to make this
determination
8. Question : (TCO 3) If the production of a good generates an external cost to the producer and the
producer is not required to factor these costs into his decision making, then: Student Answer: the
market will overproduce the good. the market will underproduce the good. the market will be efficient.
the good will be sold at a price higher than it needs to be.
9. Question : (TCO 4) If markets fail to internalize an externality and the result is underproduction of a
good relative to the socially desirable level, how can the government intervene to improve the efficiency
in the market? Student Answer: Tax the good Ban the production of the good Subsidize the good Be
more stringent with regulation
10. Question : (TCO 4) The marginal cost of improving the water quality of Lake Neighborhood by 15% is
$2 million. If we want to improve the water quality further by another 15%, the additional cost of doing
so would be __________. Student Answer: equal to $1 million less than $2 million equal to $2 million
greater than $2 million
11. Question : (TCO 4) Which of the following is true about command-and-control regulation? Student
Answer: It gives polluters the incentive to reduce pollution beyond the standard. It is usually benefitbased. It is cost effective. It always achieves the optimal pollution level.
12. Question : (TCO 5) Which of the following is not a method that can be used to estimate the benefits
of environmental quality improvement: Student Answer: Averting Expenditure Method Present Value
approach Hedonic Price Method Travel Cost Method
13. Question : (TCO 5) What is the Present Value of $200 received 10 years from now, assuming a
discount rate of 5%? Student Answer: $123 $200 $190 $400
14. Question : (TCO 5) Which of the following is not one of the steps in the risk assessment phase?
Student Answer: Dose-Response Policy Response Exposure Assessment Risk Characterization
15. Question : (TCO 5) User value is: Student Answer: the value derived from physical use of or access to
an environmental good. the value received from the continuance of an environmental good. the value of
a substitute environmental good. the value of a complementary environmental good.

16. Question : (TCO 1) Which of the following is NOT a policy evaluation criterion used in risk
management? Student Answer: Allocative Efficiency Cost-Effectiveness Environmental Justice Pollution
Prevention
17. Question : (TCO 1) The Materials Balance Diagram illustrates how economic activity impacts nature.
State how the natural environment will be affected by population growth, income growth, increased
recycling, and improved pollution prevention technologies. Citing the law of thermodynamics, why do
we consider the benefits of recycling short term? Given these interdependencies, what policies might
you advocate, and why?
18. Question : (TCO 2) Economists often extol the virtue of market equilibrium. Explain the concepts of
consumer surplus and producer surplus, and then use these to demonstrate that equilibrium is more
efficient than any other outcome in a supply and demand analysis. Give an example of a market not in
equilibrium and describe the resulting loss of surplus.
19. Question : (TCO 3) Explain why air quality may be considered a public good and, consequently, why it
will be inadequately provided unless the government intervenes. Define the characteristics of a public
good and explain why these lead to a market failure. Further explain what creates the role for the
government to provide the public good, and specify an example of a government agency fulfilling that
role.
20. Question : (TCO 4) When policy gurus discuss policies to limit dangerous emissions, they frequently
refer to cap and trade policies. Are these command and control policies or a market approach? Briefly
contrast how a command and control policy approach would differ from a market approach, which is
used more prevalently, and why. What does it mean to trade pollution rights? Is the government
approving polluters behavior?

DeVry ECON 410 Midterm Exam


Click on the link below for the solution:
https://devryfinalexams.com/products/econ-410-midterm-exam/

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