Ch. 3 Markets and Commodities Flashcards
(30 cards)
According to the market response model, innovations can lead to what?
Both an increase in supply and a decrease in demand.
It is possible to include everyone in the bargaining process that might be affected by environmental problems.
False.
What is the purpose of using green taxes?
To decrease the use of the item being taxed, and drive innovation and substitution for it.
When you have one buyer for many sellers what is it called?
Monopsony.
Which of the following is NOT a problem associated with the Coase Theorem and free-market environmentalism?
It relies on a growth population to create solutions for environmental problems.
Banking programs require significant regulatory intervention.
True.
Which of the following is NOT a problem with cap and trade policies?
A black market has been created to deal with environmental trading.
More efficient use of a resource can lead to increased consumption of that resource.
True.
The outcome of the wager between Ehrlich and Simon suggested that the effects of population growth on the environment are:
Mediated by innovation.
Which of the following statements about market-based solutions is true?
They exclude participation of future generations.
Which of the following is not a problem associated with green certification for companies?
Negative association with greenwashing.
According to the Coase Theorem, they to controlling externalities is what?
Contracts and bargaining.
Greenwashing is the attempt by corporations to accurately report their environmentally-friendly practices.
False.
According to your notes, which of the following states has the highest gasoline tax rate.
New York.
Consumer-driven environmental change can be achieved through which one of the following methods?
Green consumption.
The type of market failure in which the costs or benefits of an activity to a third party are not figured into the activity’s cost is known as what?
Externalities.
What term refers to what occurs when there is a mismatch between economic theory and the real-world?
Market failures.
Which of the following logos or groups is NOT an actual green certification?
U.S. Green Housing Council.
Which of the following relies on consumer demand to change environmental conditions?
Green consumption.
The Coase Theorem:
States that optimal distribution of goods will occur as long as property rights are clearly defined.
Which of the following is used to describe the observation that more efficient use of a resource can lead to greater environmental degradation?
Jevon’s Paradox.
Many companies spend more on trying to make their products appear “greener” than actually being green.
True.
If my factory installs super-efficient smokestacks that cause my air pollution emissions to drastically drop, I can take advantage of which program to make extra money?
Cap and trade.
Market-based solutions are always equitable.
False.
