1. Which of the following would be classified as a situation where a third party benefits from a market transaction by others?
A. City buying 10,000 trees for green space renewal projects
B. Two firms trading pollution credits to avoid cutting their toxic emissions
C. Allowing a mining company to use a natural lake to discharge waste
D. Increased levels of air pollution in neighborhoods near a football stadium
2. Which of the following is an example of an economic activity that can injure the environment? (Choose all that apply)
A. Excessive clear-cutting of wood resources by logging companies
B. Paper mill discharging raw chemical waste into a river
C. Gold mine discharging arsenic into a natural lake that it's using for a tailings pond
3. A number of different government policies can increase the incentive to innovate, including (Choose all that apply)
A. Regulations requiring more investment in innovation
B. Patent protection to guarantee intellectual property rights
C. Government assistance with the costs of research and development
4. Which of the following are ways in which the government promotes positive externalities? (Choose all that apply)
A. Spending on research and development
B. Protection of intellectual property
C. Incentives for increasing output
5. Which of the following are examples of market-based policies, rather than command-and-control policies? (Choose all that apply)
A. The federal government pays fishermen to preserve wild salmon
B. The federal government requires domestic auto companies to improve car emissions
C. A state charges an emissions tax on the quantity of carbon emitted by each firm
1. Which of the following would be classified as a situation where a third party benefits from a market transaction by others?
A. City buying 10,000 trees for green space renewal projects
B. Two firms trading pollution credits to avoid cutting their toxic emissions
C. Allowing a mining company to use a natural lake to discharge waste
D. Increased levels of air pollution in neighborhoods near a football stadium
2. Which of the following is an example of an economic activity that can injure the environment? (Choose all that apply)
A. Excessive clear-cutting of wood resources by logging companies
B. Paper mill discharging raw chemical waste into a river
C. Gold mine discharging arsenic into a natural lake that it's using for a tailings pond
3. A number of different government policies can increase the incentive to innovate, including (Choose all that apply)
A. Regulations requiring more investment in innovation
B. Patent protection to guarantee intellectual property rights
C. Government assistance with the costs of research and development
4. Which of the following are ways in which the government promotes positive externalities? (Choose all that apply)
A. Spending on research and development
B. Protection of intellectual property
C. Incentives for increasing output
5. Which of the following are examples of market-based policies, rather than command-and-control policies? (Choose all that apply)
A. The federal government pays fishermen to preserve wild salmon
B. The federal government requires domestic auto companies to improve car emissions
C. A state charges an emissions tax on the quantity of carbon emitted by each firm
