ECONOMICS 415CLICKER QUESTIONS

Chapter 6 – Question Set #2

Michael Porter, in the Porter hypothesis argues that stricter environmental policy will

incr

ease

cos

ts...

dec

reas

e co

sts.

..

pla

ce th

e Uni

t...

allo

w the

Unit...

10%0%

10%

81%1. increase costs and decrease

efficiency in production.2. decrease costs and improve

efficiency in production.3. place the United States at a

comparative disadvantage in the production of goods and services relative to its international trading partners.

4. allow the United States to overcome the constraints placed on production by limited waste disposal sites.

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As per capita income increases in an economy, since environmental quality is a normal good

the

dem

and fo

...

ther

e will

be

...

the

deman

d for..

.

the

deman

d for..

.

0% 5%

90%

5%

1. the demand for environmental quality will fall.

2. there will be no change in the demand for environmental quality.

3. the demand for environmental quality will rise.

4. the demand for pollution generating goods and services will increase.

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If the impacts of pollution are cumulative, then the rise in income in an economy

may

not

lead

t...

may

lead

to a

...

may

lead

to a

...

all

of th

e ab

o...

10%

43%

24%24%

1. may not lead to a rise in environmental quality.

2. may lead to a rise in pollution .

3. may lead to a rise in environmental quality.

4. all of the above.

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The Environmental Kuznets Curve (EKC) argues that _____________ have little impact on the environment but as an economy continues to grow the quality of the environment will __________ and then ___________.

hig

h inco

me

ec...

low in

com

e ec

o...

low in

com

e ec

o...

hig

h inco

me

ec...

0%

10%

20%

70%

1. high income economies; fall; rise.

2. low income economies; fall; rise.

3. low income economies; rise; fall.

4. high income economies; rise; fall.

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