QUESTION 1 1 points Save Answer A meditation class meets on the second floor of a building. The first floor is a dance academy. The loud music from the academy disturbs the meditation classes. The academy could be soundproofed for a cost of $6,000 or moved at a cost of $9,000. The classroom cannot be soundproofed enough to overcome the music, but the class can be moved at a cost $5,000. According to the Coase theorem, the socially optimal solution can be achieved if_ O a. both the dance academy and the meditation class relocate. O b. the dance academy is relocated. O c. property rights to a quiet environment at another location are granted to the meditation class. O d. the government purchases the building. O e. property rights to be noisy are granted to the nightclub. QUESTION 2 1 points Save Answer Negative externalities of open resources arise because O a. the government undertakes the distribution of these resources. O b. these are private goods and government enforces property rights. O c. there are no enforceable property rights to open-access resources. O d. consumers have to pay for each unit of production O e. these are available in finite amounts. QUESTION 3 1 points Save Answer Economists view pollution as an economic problem that arises because O a. private enterprises always minimize the amount of pollution produced. O b. firms that pollute do not pay the full social cost of producing their output. O c. profitable firms rarely pollute. O d. pollution costs are always bome by the government. O e. the level of pollution declines as the economy grows. QUESTION 4 1 points Save Answer Nearly half of the Superfund has been spent on_ a. research O b. cleaning rivers that have been polluted. O c. the education of public on environmental issues. O d. the development and installation of antipollution devices. O e. court costs and legal fees. QUESTION 5 1 points Save Answer A metal stamping factory moves next to a day care center. Noise from the factory makes it impossible for the kids to take a nap. Which of the following is likely to be true according to the Coase theorem? O a. An optimal solution cannot be achieved unless the costs are given. O b. The day care center should install sound insulation. O c. The factory should install sound insulation. O d. The day care center should move. O e. The factory should move.QUESTION 6 1 points Which legislation focuses on toxic waste dumps? O a. the Coase theorem O b. the Clean Water Act of 1972 O c. the Resource Conservation and Recovery Act of 1976 O d. the Clean Air Act of 1970 O e. the Superfund law of 1980 QUESTION 7 1 points Save Answer Markets can allocate resources efficiently only as long as _ O a. property rights are not defined but can be easily enforced. O b. a nonrenewable resource has been used in the production of the good. O c. property rights are well defined and can be easily enforced. O d. property rights are well defined but not easily enforced. O e. property rights are not defined and not easily enforced. QUESTION 8 1 points Save Answer To solve the common-pool problem in fishing, governments can _ O a. impose a tax. O b. impose property rights. O c. impound all fishing fleets. O d. remove property rights. O e. provide a subsidy QUESTION 9 1 points Save Answer Exhibit 17.1 $0.15 - Marginal social cost Dollars per kilowatt-hour 0.10 - Marginal private cost 50 75 Millions of kilowatt