EC307

Quiz 4 Sample Questions

16 out of these 22 questions will come in Quiz 4.

1. Municipal solid waste (MSW)

A. refers to the collection of hazardous and toxic wastes disposed of in local communities

B. can cause problems if improperly managed

C. poses no health or ecological risks to society
D. is a problem only in developing countries

Use the following to answer the question below.

Consider the following model of the municipal solid waste (MSW) services market in the city of
Houston.

MSC = 1.5 + 1.25Q MSB = 30 – 2.5Q

MEC = 0.75Q MEB = 0

where Q is the number of trash containers serviced per household per month.

2. Assuming that Houston uses a flat fee pricing system for trash services, the equilibrium
quantity of MSW services provided is
A. 12
B. 1.2
C. 0
D. 3

3. In the United States, MSW generation

A. has been stable for the past several decades
B. growth over time has not been met with improved waste management practices
C. has sharply declined over time
D. per capita shows a continual decrease since 1980

Use the following to answer the question below.

Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as
follows, where Q is in millions:

MSB = 12 – 0.4Q MPB = 12 – 0.3Q MSC = MPC = 2 + 0.1Q

4. In the absence of environmental policy, the number of tires produced in a competitive

market is
A. 20 million
 B. 25 million
C. 4 million
D. none of the above

5. Available data on the generation of MSW in the United States indicates that
A. durable goods represent the largest proportion by weight of all product groups
B. plastics are the largest proportion by weight across all materials groups
C. containers and packaging are the largest proportion by weight of all product groups
D. none of the above

6. In the United States, the recovery rate for plastic wastes

A. has been declining as the use of plastics has been decreasing over time
B. has been rising because of low-cost methods for sorting by resin content
C. is waning because of the absence of lucrative markets for all recycled plastics
D. is generally low because of costly steps in the plastic recycling process

7. In the United States, the recovery rate for plastic wastes

A. has been declining as the use of plastics has been decreasing over time
B. has been rising because of low-cost methods for sorting by resin content
C. is waning because of the absence of lucrative markets for all recycled plastics
D. is generally low because of costly steps in the plastic recycling process

8. The demand for MSW services

A. represents the production decisions of firms providing disposal or incineration services
B. would likely be lower for higher income households
C. would tend to be lower for more environmentally aware consumers
D. all of the above
E. none of the above

9. A flat fee pricing system for MSW services

A. ignores the positively sloped MPC of MSW services
B. causes an under allocation of resources to MSW services
C. means that demanders pay nothing for MSW services
D. provides an incentive for waste reduction

10. Pay-as-you-throw (PAYT) programs, also known as unit pricing schemes,

A. are uncommon in the United States
B. lack incentives because they are strictly command-and-control in approach
C. can be implemented using flat rate pricing or variable rate pricing
D. none of the above
Use the following to answer the question below.

Suppose the marginal benefits and marginal costs of tire production in the U.S. are modeled as
follows, where Q is in millions:

MSB = 12 – 0.4Q MPB = 12 – 0.3Q MSC = MPC = 2 + 0.1Q

11. Based on this model, it is apparent that there is a

A. negative production externality
B. positive external benefit
C. consumption externality measured as MEB = – 0.1Q
D. negatively sloped MEC function

12. Which of the following statements about deposit/refund systems is INCORRECT?

A. Most deposit/refund systems in the United States are used for beverage containers
and lead-acid batteries.
B. Some nations use deposit/refund systems for automobile bodies.
C. The deposit is imposed at the time of purchase like a retail disposal charge.
D. To be a viable system, the refund must be exactly equal to the deposit.

13. A set of control strategies to reduce the amount and toxicity of hazardous waste at
every stage of the waste stream is known as
A. source reduction
B. waste management
C. “cradle-to-grave” management
D. risk-benefit analysis

14. Official responses to a hazardous substance release aimed at restoring immediate

control are referred to as
A. removal actions
B. remedial actions
C. records of decisions
D. preliminary assessments
Use the following to answer the question below.

Consider the following model of the municipal solid waste (MSW) services market in the city of
Houston.

MSC = 1.5 + 1.25Q MSB = 30 – 2.5Q

MEC = 0.75Q MEB = 0

where Q is the number of trash containers serviced per household per month.

15. The dollar value of a waste-end charge that would achieve efficiency in this market is
A. $7.60
B. $11
C. $9.5
D. $30

16. Which of the following statements about deposit/refund systems is INCORRECT?

A. Most deposit/refund systems in the United States are used for beverage containers
and lead-acid batteries.
B. Some nations use deposit/refund systems for automobile bodies.
C. The deposit is imposed at the time of purchase like a retail disposal charge.
D. To be a viable system, the refund must be exactly equal to the deposit.

17. Achieving both environmental quality and economic prosperity is

A. represented at all points along the Kuznets Curve
B. a view supported by the Nobel Laureate, Robert Solow
C. the overall goal of sustainable development
D. strictly a short-term objective

18. The Environmental Kuznets Curve

A. models a theorized relationship between environmental pollution and population
B. is positively sloped and linear
C. illustrates the relationship between economic growth and environmental
degradation
D. graphs as a U-shaped curve

19. The pessimistic view of the shape of the Environmental Kuznets Curve is
A. linear from the origin
B. an inverted-U shape that flattens out after some critical income level
 C. a perfectly symmetric inverted-U shape
D. a flattened U-shape

20. Agenda 21
A. was an agenda in COP23.
B. represents a worldwide voluntary plan for moving toward sustainable development.
C. was a Pacific Islands Forum intuitive against the effect of Climate Change.
D. an agreement between the European Union and the Pacific.

21. Ten years after the Rio Summit,

A. the World Summit on Sustainable Development was held in Johannesburg
B. the Rio Declaration was adopted
C. worldwide interest in the summit’s motivating principles had waned
D. participating nations agreed to abandon the original goals of Agenda 21

22. The Toxics Release Inventory (TRI)

A. is a national database providing information about hazardous releases?
B. provides information on hazardous substances solely to government officials
C. is no longer maintained and reported to the public
D. provides an annual list of the parties responsible for hazardous releases