When economists discuss the environment, they emphasize the _______________.

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

The greatest source of air pollution is _________________.

solid waste disposal
electric utilities
industrial processes
road transportation

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

Legal ownership laws
Property rights
Emission charges
Externalities

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

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

Marginal social cost is equal to ___________________.

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

Marginal benefit to others _________________.

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

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

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

Governments can use subsidies _________________.

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

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

intellectual
creative
knowledge
academic

A patent or copyright grants its owner exclusive use _______________.

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

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